A credit analyst is a person who is responsible for analyzing the creditworthiness of a customer. Credit analysts assist in assessing the loan applicant’s ability to repay the loan and then recommend the application for acceptance or rejection. Credit analysts work in investment banks, credit card companies, commercial banks, investment companies, and credit rating agencies. Many other companies hire credit analysts for their credit departments. The credit analysts’ salaries are very lucrative making this job among the top professions to opt for people with an interest or background in commerce.
Before discussing the salary aspects of this role, let us first understand the job responsibilities, qualifications, skills, and career pathways and scope of a credit analyst in detail.
Job Responsibilities of Credit Analyst
A credit analyst performs a variety of roles. They collect financial information about loan applicants which includes their earnings, savings, purchase history, spending patterns, etc. Then they review this information and decide whether to approve the loan of the person or not. A Credit analyst also reviews problem accounts. For instance, an analyst in a credit card issuing bank review the defaulted payments history of clients to reduce the credit line or close the credit card altogether. A credit analyst can also recommend credit line extensions to clients with strong payment history.
Qualifications Requirements for Credit Analyst
To become a credit analyst one needs to have a degree in finance, accounting, or a related field. A credit analyst course can also help candidates looking for jobs in this field. The applicants for these jobs should have a decent knowledge of statistics, basic accounting and finance, calculus, ratio analysis, industry assessment, economics, and financial statement analysis. These subjects are necessary for working in risk assessment. Many companies and banks also provide candidates with on the job training to help them polish their skills.
Skills for Credit Analyst
Apart from qualifications, some other important skills for a credit analyst are:
- Â Communication skills
- Quantitative analysisDiligence
- Multitasking and prioritization
- Industry knowledge
- Financial software experience
- Accounting
- Problem-solving aptitude
- Documentation
- Attention to details
Career Pathways and Scope of Credit Analyst
Credit Analyst is an enjoyable career for those who love working with numbers. Their day to day job activities involve reviewing various numerical figures. They have an indoor office job with employment in major banks, credit unions, government agencies, and investment management groups, etc. With a degree in Finance or Accounting, one can apply for a job as a junior credit analyst in a financial institution. To further upgrade the career, one needs to have a good working experience and an additional credit analyst course or a degree to get a promotion or a good hike in the salary. The major pathways for credit analyst job roles are senior credit analyst, banking credit analyst, credit manager, etc.
The average salary of a credit analyst in India is around INR 5,92,605. However, the actual salaries vary from company to company and position to position. With experience, the salary figure rises to 1 million and above for professionals. Additional skills like loan underwriting, risk management/control, financial analysis, etc.help get an above-average pay.
A credit analyst is a responsible job that needs complete awareness and attention towards the work. A credit analyst is in charge of deciding whether a person or organization is eligible for a loan or not and if yes, then at what interest rate. Various factors need to be kept in mind while reviewing the applicants as your decision can change their future for better or worse.
