• EXECUTIVE PROGRAMME IN INVESTMENT BANKING AND CAPITAL MARKETS
  • ADVANCED MANAGEMENT PROGRAM IN FINANCIAL SERVICES AND CAPITAL MARKETS
  • IIM Indore Postgraduate Certificate Programme for Emerging CFOs
  • POSTGRADUATE PROGRAM IN BANKING AND FINANCE
  • PGP in New Age Banking
    Co-created with Imarticus Learning
    4.8 out of 5 by 669 learners
    4x Industry Demand
  • POST GRADUATE DIPLOMA IN MANAGEMENT
    Co-created with BIMTECH
    4.8 out of 6071 learners
    2x industry demand
  • MBA in Investment Banking
    Co-created with Jain University
    4.5 out of 5 by467 learners
    2x industry demand
  • MBA in Fintech
    Co-created with Jain University
    4.4 out of 5 by 349 learners
    2x industry demand
  • MBA (Distance) in Banking and Finance with NGASCE
    Co-created with NMIMS
    4.7 out of 5 by 669 learners
    4x Industry Demand
  • Post Graduate Program in Banking and Credit Underwriting
    4.7 out of 5 by 1376 learners
    12 X industry demand

What is a Credit Analyst Role?

A credit analyst role involves assessing the creditworthiness of an individual or company to determine the likelihood that they will honour their financial obligations. Credit analysts evaluate borrowers' past financial and credit history to determine their financial health and their ability to repay credit advanced to them by a lender. Typically, credit analysts are employed by credit rating agencies, credit card-issuing companies, commercial and investment banks, and investment companies.

Credit Analyst is arguably one of the most sought-after jobs in the finance industry. For many, it is their first step towards realising the dream of becoming an Investment Banker, and for others, it might just be their natural calling. Either way, the competition is fierce here, and hence, it is imperative to develop the right skill set to stay in the game.

A credit analyst researches the creditworthiness of an organization and gives an invaluable insight to the stakeholders who are planning an investment. These researches are driven by an array of socio-economic and financial parameters, requiring the Credit Analyst to have sound knowledge of the matter.

Below are the skills which are crucial not only for making it as a Credit Analyst but also, to make it big as one.

Accounting Skills

Given the quantitative nature of the field, Credit Analysts are expected to be proficient at accounting. Also, the fact that most Credit Analysts major in finance, statistics, and related fields doesn't make it any easier to survive without this skill.

Many non-finance significant analysts (mostly STEM majors) are often provided with on-the-job training on basic accounting techniques like ratio analysis, financial statement analysis and statistics.

Diligence

A missing data point or an inconsistency in the data set can lead to devastating impacts on the analysis. Even worse, can mislead the entire project. Hence, paying considerable attention to minute details is a necessary skill for a Credit Analyst.

Being well versed with software/technology used in the finance

Microsoft Excel is the bread and butter of any finance professional. So, try learning not only the basic stuff like sorting, plotting financial models etc. but also, advanced concepts like pivot tables and VBA which will ease your analysis to a large extent. Excellent knowledge of Microsoft PowerPoint along with some other financial tools will also give you an edge. Again, many firms require their employees to undergo a full training program for this.

Knowledge of Industry

Being a credit analyst allows you to work for various industries such as healthcare, real estate, FMCG and many more. And needless to say, each sector has a different set of parameters to judge the creditworthiness of an organization and the value you bring to your firm. You need to develop a keen knowledge of finance in your industry as a credit analyst. An in-depth understanding of your industry will help a lot in identifying opportunities and risks.

An ability to multitask

Credit Analysis isn't exactly a forgiving profession when it comes to workload. Sometimes, a credit analyst is required to work on multiple projects at once from various clients. Hence, your multitasking, and more importantly, your prioritising skills come in handy here. You need to juggle between different deadlines and different demands and prioritise stuff according to urgency and expectations from the client.

Strong written and oral communication skills

A credit analyst must be able to convey his/her analysis lucidly via verbal or written means. They are almost always required to work in teams; hence, excellent communication skills are an absolute must.

Problem Solving aptitude

At the core of it, credit analysis is all about how well you satisfy the client's problem statements by using the resources in the most meticulous way possible. It sure is a position of great responsibility and demands an analytical mind, strong knowledge of relevant fields, and most of all, a problem-solving attitude.

Ability to handle stress

This profession can stress you to your limits at times and the immense responsibilities associated with it don't make it any easier. Risk assessment is a demanding and time-consuming process that requires you to juggle between tasks almost daily. Not everyone is a cut out for this job.

The above might seem overwhelming at first glance, however, being a Credit Analyst is never easy, it never was. Nonetheless, a successful stint as one might be your first step into an advantageous line of career. Also, keep in mind, that the above was just a list of general skills you need to develop as a Credit Analyst. The "real" skills would come to you only after you have experienced them as a professional yourself.

Top Credit Analyst Interview Questions and Answers

Credit analysts facilitate credit risk management by measuring the creditworthiness of the individual or a firm. Credit analysts are generally employed by banks, credit card companies, rating agencies, and investment companies.

Below are our top credit analyst interview questions.

Q1) What is Credit Analysis?

Q2) Explain the process of Credit Analysis?

Q3) What are the 5 Cs of Credit Analysis?

Q4) What do you mean by interest coverage ratio?

Q5) What do credit rating agencies do?

Also Read:

How Can Credit Analyst Become Financial Analyst

Credit Risk Management Course Trends In 2022: What’s New?

What Attracts Business Enterprises to credit risk Analyst Courses?

For Online Course Enquiries
About Imarticus
Imarticus Learning is India’s leading professional education institute that offers training in Financial Services, Data Analytics & Technology. We’ve successfully transformed careers of over 35,000+ individuals globally through our Certification, Prodegree, and Post Graduate programs offered in association with leading and renowned global organisations in the Financial Services, Data Analytics & Technology domain.
Related course
  • Certification
    EXECUTIVE PROGRAMME IN INVESTMENT BANKING AND CAPITAL MARKETS
    Course duration(year)
    1
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Advanced Management Program
    ADVANCED MANAGEMENT PROGRAM IN FINANCIAL SERVICES AND CAPITAL MARKETS
    Course duration(hours)
    126
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Postgraduate Program
    IIM Indore Postgraduate Certificate Programme for Emerging CFOs
    Course duration(Months)
    12
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Postgraduate
    POSTGRADUATE PROGRAM IN BANKING AND FINANCE
    Course duration(months)
    4
    Upcoming batches
    1
    Organizations enrolled
    20
    Upcoming Batches
    Date Location Schedule
    Date Location Schedule
  • Placement Program
    PGP in New Age Banking
    Co-created with Imarticus Learning
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.8 out of 5 by 669 learners
    4x Industry Demand
    Upcoming Batches
    Date Location Schedule
    8th Jan 2022 Live Instructor - Led Training Online
    Date Location Schedule
  • Finance
    POST GRADUATE DIPLOMA IN MANAGEMENT
    Co-created with BIMTECH
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.8 out of 6071 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    3rd August Live Instructor - Led Training Online
    Date Location Schedule
  • Recent Graduates
    MBA in Investment Banking
    Co-created with Jain University
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.5 out of 5 by467 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    31st July ONLINE Online
    Date Location Schedule
  • Recent Graduates
    MBA in Fintech
    Co-created with Jain University
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.4 out of 5 by 349 learners
    2x industry demand
    Upcoming Batches
    Date Location Schedule
    31st July ONLINE Online
    Date Location Schedule
  • Placement Program
    MBA (Distance) in Banking and Finance with NGASCE
    Co-created with NMIMS
    Course duration(Months)
    24
    Upcoming batches
    1
    Organizations enrolled
    20
    4.7 out of 5 by 669 learners
    4x Industry Demand
    Upcoming Batches
    Date Location Schedule
    8th Jan 2022 Live Instructor - Led Training Online
    Date Location Schedule
  • Post Graduate
    Post Graduate Program in Banking and Credit Underwriting
    Course duration(6)
    Upcoming batches
    1
    Organizations enrolled
    20
    4.7 out of 5 by 1376 learners
    12 X industry demand
    Upcoming Batches
    Date Location Schedule
    3rd August MUMBAI Online
    Date Location Schedule