what is a credit analyst?
As a credit analyst, you assess risk factors associated with loans to companies and individuals. You gather large amounts of information, compile financial records and review them. You make recommendations on whether to give loans to individuals or a business. You also prepare reports to be used by banks to make decisions. Aside from assessing the financial records, you determine the creditworthiness of an individual or company. You evaluate a borrower's financial and credit history to establish the economic health and ability to repay the lender.
Credit analysts work for financial institutions that lend money. You are employed by credit rating agencies, credit card companies, investment and commercial banks. Some credit analysts work for building societies and other credit facilities tied to specific professions. For instance, manufacturers and workers in the mining industry may have credit facilities for their employees.
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average credit analyst salary
As a credit analyst, you earn an average remuneration package of $78,000 per year. In an entry-level or junior position, you take home a salary of $70,000 annually. With experience, your earnings increase to $85,000 per year. The remuneration package fluctuates depending on various factors.
what factors affect the salary of a credit analyst?
The salary of a credit analyst depends on experience and educational qualifications. You handle simple company tasks with minimal academic qualifications and expertise, reducing your earnings. You can negotiate a higher salary when you gain expert knowledge in a specific industry.
The location and company size also influence your earnings. When you work in metro areas, you are likely to earn more than credit analysts working in smaller cities. The demand for credit analysts in metro areas increases your earning potential. Large financial institutions also pay higher remuneration due to the unlimited resources at their disposal. When you work in a large organisation, you perform complex duties, boosting your earning potential. Working in a small company limits your earnings since they have limited resources and need help paying higher salaries.
types of credit analysts
Some of the types of credit analysts include:
- consumer credit analysts: as a consumer credit analyst, you examine an individual's risk factors and financial condition to determine their eligibility for a loan. You gather critical information to help you assess creditworthiness like past credit history, investments, assets and salary.
- corporate credit analysts: as a corporate credit analyst, you evaluate the credit risk of lending money to industrial companies, trading firms and manufacturing enterprises. As a corporate credit analyst, you are skilled in a specific industry. You can analyse the company's ability to pay the loan based on the sector and products they sell. You are well versed in accounting techniques to understand businesses' financial statements and performan
working as a credit analyst
If you are good with numbers and are interested in becoming a credit analyst, explore the duties, responsibilities and work environments of credit analysts.
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credit analyst job description
Some of the daily tasks of credit analysts include:
- evaluating credit risk: as a credit analyst, you assess the risk of lending to a company or an individual. You review the credit risk by analysing the debt repayment history, income streams and purchase activities. After analysing the information, you recommend whether the financial institution should accept or reject the application.
- analysing financial data: as a credit analyst, you are hired by credit unions to analyse clients' financial data. That means you evaluate assets, liabilities and earning history to determine clients' suitability for credits. When analysing a company, you review the audited annual reports, management accounts and financial statements.
- review credit limits of existing customers: as a credit analyst, you review the borrower’s repayment history and earnings to determine new credit limits. You also gather the relevant financial data from the customer and create a report on whether to decrease or increase their credit limit.
- following up on inquiries from borrowers: as a credit analyst, you meet with borrowers to explain their financial situation and help them make decisions. If they have an issue with their credit card limits, you explain how to determine them.
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work environment
As a credit analyst, you work in a fast-paced office setting and spend most of the day reviewing loan applications and generating financial data. While the role is primarily a desk job, you occasionally visit clients at their workplaces or homes. You may also attend meetings and workshops at offsite locations, which requires travelling. Some companies have work-from-home opportunities for credit analysts.
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who are your colleagues?
Depending on your employer and industry, your colleagues might include mortgage brokers, underwriters and accountants. You might also be working close with financial advisors, finance managers and financial assistants. Other specialists you work with could consist of, but not be limited to, financial accountants, auditors, finance analysts, finance business partners and financial planners.
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work schedule
As a credit analyst, you work the typical business hours from 9 am to 5 pm. When you are in a full-time position, you work 35 to 40 hours a week. Sometimes, you attend evening meetings and events. Occasionally, you work evenings or weekends to participate in essential client functions or company events. Aside from full-time positions, part-time work opportunities are also available.
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job outlook
Credit analysts have various opportunities for career progression or specialisation. For instance, a credit analyst can specialise in working for building societies and mortgage loan providers. Some credit analysts specialise in corporate loans or individual loans. You also have opportunities for career progression in the finance sector.
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advantages of finding a credit analyst job through randstad
Finding your credit analyst job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a credit analyst is often a stepping stone to an attractive permanent job. Thousands of people earn a permanent contract every year with great employers every year thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too.
education and skills
There are no academic requirements for becoming a credit analyst. Still, most employers hire candidates with qualifications in a related field. Some of the qualifications you can pursue include:
- bachelor’s degree: pursue a qualification in finance or accounting, like a three-year course, like a bachelor of finance. To join the bachelor's degree program, complete Year 12. It would be best to consider completing a postgraduate study like a master's in finance.
- certifications: consider completing a Chartered Financial Analyst (CFA) program to improve your career options. You should also gain experience through entry-level roles in the banking sector.
credit analyst skills and competencies
Some of the skills you require to work as a credit analyst include:
- accounting skills: as a credit analyst, you rely on accounting skills like balancing ledgers and creating financial statements to understand a borrower's financial position. You develop financial statements and ratios to review creditworthiness.
- industry knowledge: As a credit analyst responsible for assessing loan applications for companies and businesses, it is important to have a solid understanding of the specific industry in which the business operates. Each industry has its own unique methods for assessing a company's financial position, and being familiar with these methods will enable you to create accurate reports and make well-informed decisions.
- communication skills: As a credit analyst, a crucial aspect of your job is to create financial reports and deliver them to stakeholders. Effective verbal and written communication skills are essential to succeed in this role. Strong writing skills are necessary to prepare accurate reports, while communication skills come in handy when explaining complex concepts and interacting with colleagues.
- problem-solving skills: as a credit analyst, you help clients meet their financial objectives. Your task requires resourcefulness and analytical skills to solve customers' financial problems. Having problem-solving skills also helps you resolve issues in the company and reduce business risks.
- attention to detail: as a credit analyst, you handle huge volumes of information. For instance, you review the personal background and financial data of clients. Since you handle sensitive data, you pay attention to details when evaluating the information for loan approval.
FAQs about working as a credit analyst
Here, you will find the answers to the most frequently asked questions about the profession of a credit analyst.
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what does a credit analyst do daily?
As a credit analyst, you evaluate and make decisions about credit applications. You review the purpose of the application, credit viability, customer’s creditworthiness and payment history. Essentially, you find out the creditworthiness of companies or people applying for loans. You gather the financial data and spending patterns of the applicants and recommend approval or denial of loans.
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how do you become a credit analyst?
While you don’t require specific academic qualifications to work as a credit analyst, you will benefit from academic qualifications in business and finance. Complete a bachelor’s degree in finance or accounting or pursue a postgraduate study in a related field. You also need experience in entry-level jobs.
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is credit analyst a good role?
Working as a credit analyst is an exciting career with promising career prospects. Aside from the favourable remuneration package, you have great opportunities for career growth in financial institutions and banks. You can work in different industries that issue loans to workers giving you diverse job opportunities.
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what skills do you need to be a credit analyst?
As a credit analyst, you require analytical skills to review the financial statements of loan applicants and check their creditworthiness. You need attentiveness to details to check the accuracy of the information provided. Your detail-oriented skills are useful in data collection and analysis since incorrect information can be costly for the company or client. You also require communication skills to explain complex financial data analysis to clients.
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how much does a credit analyst earn in New Zealand?
Credit analysts earn an average salary of $78,000 per year. When you are new in the role, you receive a remuneration of $70,000 annually due to your low experience and qualifications. As your experience improves, your earnings also increase, and you can take home over $85,000 yearly.
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how do I apply for a credit analyst vacancy?
Applying for a credit analyst job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
