A credit analyst looks at a person’s or a company’s ability to borrow money. By analyzing the individual’s or organization’s financial history, credit analysts evaluate the suitability for a loan. Credit analyst careers involve making decisions about the degree of creditworthiness that clients have. When the person or corporation approaches a credit analyst about borrowing money, it is the job of the analyst to direct the client to the appropriate requirements, then sort through, organize and evaluate the requirements once they are submitted in order to determine if obtaining credit is a possibility.
Credit analyst careers also involve making inquiries of the banks who would be doing the lending. It is the analyst’s job to uncover the bank’s credit requirements so that he or she can advise the client about whether or not it will be beneficial to approach this bank for a loan. The analyst should ask around at multiple banks so that he or she is familiar with all the competition and the fixed rates, credit limits and other policies. A credit analyst career involves such duties as perusing annual reports, filing delinquency reports and coordinating various credit systems. The analyst must be aware at all times of the current state of the financial industry.
Credit analyst careers are generally found in commercial or investment banks, investment companies, credit rating agencies and other institutions that issue credit cards. Within these sectors, credit analyst careers involve becoming extremely familiar with clients’ financial data, credit history, current spending habits, and earnings and savings information. A significant amount of time is spent gathering and interpreting data and statistics, so a credit analyst must be detail-oriented, organized and have a good head for numbers. A credit analyst’s career also involves providing direction and guidance to loan applicants, so these professionals should also be good communicators and able to translate complex financial jargon into layman’s terms.
An example of a task that credit analysts face is working together with a client and a bank to recommend a course of action after the client has defaulted in payments. Closing the credit card, reducing the credit line or switching to a new credit line are some options that the credit analyst may suggest. Credit analyst careers do not only involve working with clients who have credit troubles; analysts also take on new clients who are trying to establish credit, and they help them decide what type of credit fits best with their financial situation.