A credit analyst investigates a loan applicant's creditworthiness. Credit analysts generally work for commercial or investment banks, credit card issuers or credit ratings agencies. They may analyze the credit of individuals or companies. A credit analyst works by gathering financial information, such as salary, savings, payment history and debts, and then recommending an action, such as approving a loan or reducing a credit line.
Most credit analysts have a bachelor's degree in finance, economics, accounting or a related field. It is important for credit analysts to be comfortable with basic accounting techniques such as ratio analysis, statistics and financial statement analysis. Many companies provide on-the-job training for credit analysts, but may also require analysts to have some proven ability in advanced math, business or quantitative analysis. Analysts who do not have a bachelor's degree in a financial area often have job experience in finance or business.
Knowledge of Industry
Credit analysts who work in the commercial sector need to develop an in-depth knowledge of the industry they are analyzing. For example, credit analysts who investigate and analyze real estate transactions need to gain an in-depth knowledge of the real estate industry. Some business analysts may already have experience working in the industry they are analyzing. Credit analysts also need to keep up with any new developments regarding finance in the industry they are analyzing.
Credit analysts need to be detail oriented so they can spot any missing or incorrect information on credit reports and financial statements. They must also be thorough and well-organized, to ensure that all necessary data and documents are accounted for. Credit analysts often work on several reports at the same time, so they need the ability to prioritize and multitask. Strong written and oral communication skills may also be important, as credit analysts must make frequent reports and presentations.
Credit analysts should have some experience in using financial software products. Companies often provide training in the methods and computer software used in credit analysis. For example, credit analysts at Morgan Stanley undergo a six-week, full-time training program that includes courses in subjects such as computer modeling, corporate valuation and accounting. Analysts are also expected to be able to create statistical exhibits and build computer models of projected financial results.
- financial analyst workplace image by luka from Fotolia.com