What’s Involved in Starting A Career As A Credit Analyst

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  • Credit Analyst Career

When customers apply for a loan from a bank or lending institution, their credit is typically reviewed in order to make sure that they are a good risk. The person who analyzes applications for loans, credit cards, or other types of financing is known as a credit analyst.

The job itself entails looking at the applicant’s credit report and other financial documentation to ensure that they meet the qualification requirements for the loan. Based on their analysis, they can then recommend whether or not personal or business loans should be approved. Credit analysts work for a variety of different types of businesses ranging from banks and credit card companies to credit rating agencies.

Educational Requirements

Credit analysts are generally required to have a bachelor’s degree in a field that is related to finance. This could range from accounting to economics. Ideally, students who hope to enter this field will focus their studies on courses such as business law and ratio analysis. These skills can prove extremely beneficial when working in the real world. A lot of times, banks or other financial institutions will also provide training of their own to ensure that credit analysts are aware of all of their policies and procedures. In some cases, workers may start out working as an assistant for a credit analyst so that they can get a first-hand look at how the job works before being promoted.

Building A Strong Skill Set

The skills that are required to be a good credit analyst go beyond simply being able to work with numbers. These professionals are also required to communicate with others and to provide customer service. The job entails detailed research and analytics, meaning that the ideal candidate will have a good head for figures and strong attention to detail. These skills can be fine-tuned by taking courses or workshops after graduation. Participating in these types of classes can help make candidates more attractive to potential employers. If you’re still wondering whether or not to be an analyst, then check out this piece from Harnham on the area.

Certification

Although credit analysts are not required to be certified, it can be beneficial when it comes to finding a job. Obtaining certification is done by taking a test that is offered by the National Association of Credit Management. There are different levels of certification available, depending on the amount of real-world experience that the candidate has. Recent graduates may also want to look into additional organizations that provide certification such as the Risk Management Association. The Center for Financial Training is another organization that may be worth a closer look for students who are interested in pursuing certification.

Advancement Opportunities

As credit analysts gain experience, they have plenty of opportunities for advancement. One of the most common paths that people take after four or five years of on-the-job experience is to move up to the role of credit manager. There are also other upper management positions available for experienced analysts. In some cases, credit analysts who work for smaller companies may need to look for employment with a larger firm if they want to move up the chain.

So, after reading this you should have a good idea of whether or not you want to get involved in this as a career.

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