Credit Analysts: Job Description, Education, Skills and Duties, Earnings and Outlook
Submitted by: paula
Job Overview Gone are the days when the decision on lending money was based on personal reputation. Today, banks, credit and financial institutions need more proof as to the capability of the borrowers to pay, including the interest. This is what the credit analyst's job is for. Credit analysts are staff who analyse information so as to determine the risk involved in lending money to individuals as well as to businesses. They are the ones who contact banks, credit associations as well as other useful and credible sources to be able to obtain an accurate information as to the allowable credit limits the institution can risk.
Education, Knowledge and Trainings Required
If you are planning to pursue this kind of career, courses that are helpful in high school are as follows: Economics, Business, Accounting, Mathematics and Computer. As for the post secondary training, the minimum requirement to become a credit analyst is a possession of a bachelor's degree in a directly related field such as Finance, Accounting as well as Business Administration. There are certifications that can be obtained voluntarily that will give the title of a credit business associate, credit business fellow, as well as certified credit executive. These are very useful if you want to go up the career ladder in this field.
Skills and Abilities
The skills that are most important here are the skills in mathematics, data gathering and communications as well as decision making. Skills in mathematics will enable the credit analyst to weight the risk versus the gain. Data gathering is important since these information will serve as the basis for decision making as to whether to approve or disapprove of the loans applied.
Duties
The job of the credit anaylst falls in two areas of concentration. Either they are commercial or business analysts, or they are consumer credit anlysts. Commerical or business analysts focus on evaluating risk in business loans while conumer credit anaylsts evaluate risks in personal loans. Both of them study financial documents such as the statement of assets and liabilities, sources of income, as well as the company's business status.
They also do consultations from the institutions wherein the applicants have previous financial relationships. They prepare the papers, analyze, approve or disapprove of the loan request as well as facilitate filling out of applications.
Earnings and Job Outlook
The salary of a credit anaylst may depend on the level of education, as well as one the years of experience in the field. The median annual income for this is around 57,000 U.S. dollars approximately. Those who are already in the senior positions may earn around or over 100,000 U.S. dollars annually. The job opportunity for this career is expected to grow more slowly than the average. However, when interest rates drop due to any kind of economic conditions, the need for credit analysts rise, thus the employment.
Paula Hiz is a researcher and a human resource specialist who helps newly graduates, job applicants and post graduate professionals be aware of their job opportunities and available trainings for skills and practice upgrading.
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Word Count: 526 Date: Sat, 8 Jan 2011 Time: 11:23 AM
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