Credit Analyst Job Description: Top Duties and Qualifications

Last updated: June 22, 2022

A Credit Analyst, or Commercial Credit Analyst, is responsible for evaluating the financial health of a loan applicant to determine whether to approve their application. Their duties include working with Junior Credit Analysts to investigate a loan applicant’s finances, helping business owners determine the financial risks associated with a potential client and adhering to lending protocols to confirm or deny applicants their loan.

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Credit Analyst duties and responsibilities

The important duties and responsibilities for the job of Credit Analyst include:

  • Enter, update and retrieve information for credit applications.
  • Determine the creditworthiness of applicants.
  • Designate the degree of risk involved in extending credit by performing a cash flow analysis of each business.
  • Ensure that all approved applications comply with bank criteria.
  • Review deals involving junior Credit Analysts and assist them as needed.
  • Assist with bank and client audits.
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What does a Credit Analyst do?

Credit Analysts typically work for insurance companies, banks, credit agencies or unions and investment companies to ensure the financial stability of loan applicants. They work closely with other credit professionals to weight the risks of potential lenders and investigate financial documents to determine past debts or missed payments. Their job is to use review company lending policies to distinguish qualified applicants from unqualified applicants. They may also be responsible for interacting with current lenders to help them apply for additional loans and follow up with lenders about missed payments.

Credit Analyst skills and qualifications

A successful Credit Analyst candidate will have the following skills and qualifications to conduct daily activities for this role:

  • Research skills
  • Strong problem-solving, mathematical and analytical skills
  • Excellent written and verbal communication skills
  • Ability to maintain confidentiality
  • Proficiency with computers and computer software, like programs that aid in statistical and financial calculations
  • Proficiency with financial reports and statements

Credit Analyst salary expectations

The average salary for a Credit Analyst is $55,556 per year. Exact salary may vary depending on the applicant’s level of education, experience and geographical location. The typical tenure for a Credit Analyst is one to three years.

Credit Analyst education and training requirements

The education and training required of a Credit Analyst includes at minimum a bachelor’s degree in finance, accounting or a related field. A related field could include bookkeeping or business. A Master of Business Administration degree is a plus. Applicants with a Certified Public Accountant, Certified Financial Planner, Chartered Financial Analyst, Certified Management Accountant, Certified Banking and Credit Analyst or similar certification are especially encouraged to apply.

Credit Analyst experience requirements

Companies hiring Credit Analysts often look for business-related experience including work in payroll departments, accounts payable and accounts receivable as a suitable background. The ideal candidate will bring at least 4 years of experience as a Credit Analyst or Financial Analyst and possess a strong knowledge of common accounting and office suite software. Experience in lending is a must, and experience at a supervisory level is ideal. 

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Frequently asked questions about Credit Analysts

 

What is the difference between a Credit Analyst and an Underwriter?

Although Credit Analysts and Underwriters have similar job responsibilities, they differ in their areas of focus and levels of seniority. For example, Underwriters review loan applications to determine the type of loan they can offer an applicant based on their current financial status. Once they determine the applicant’s eligibility and what loans they qualify for, they send their proposals to the Credit Analyst who conducts their own investigation. 

Based on information from the Underwriter and their findings, they either approve or deny the application. Therefore, Credit Analysts typically hold more seniority as they make the final decision about loan applications.

 

What are the daily duties of a Credit Analyst?

On a typical day, a Credit Analyst receives one or more credit applications to review. They start by completing any work leftover from the previous business day. Throughout the day, they review financial statements, contact banks to obtain additional financial documents and state their decision as to whether or not they believe an applicant’s credibility. 

Credit Analysts also respond to emails or phone calls from loan applicants and approved clients to answer their questions and update them on the status of their application. They use downtime to review their companies lending policies and learn about changes to the lending process.

 

What qualities make a good Credit Analyst?

A good Credit Analyst is someone who has an investigative mindset. This quality motivates them to review loan applications and gather financial evidence to determine their eligibility. They also need to have a detailed knowledge of accounting software to review financial documents. Further, a good Credit Analyst should demonstrate excellent customer service to help existing clients understand the terms of their loan agreement. This quality also allows them to help potential clients compile the necessary documents needed to submit their loan application for review. 

A good Credit Analyst also stands by their company’s lending policies and doesn’t make exceptions for unqualified applicants.

 

Who does a Credit Analyst report to?

A Credit Analyst typically reports to a Credit Analyst Manager or a Senior Credit Analyst. These professionals act as a point of communication for Credit Analysts and junior staff with questions regarding lending policies and complex loan applicant cases.

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