What does a Credit Analyst do?

Learn all about Credit Analyst duties, skills and much more. Get expert advice on how to become a Credit Analyst.

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Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 4 min read

A credit analyst is a professional who performs financial analysis on potential borrowers to determine the risk of lending money to them. This analysis includes reviewing the borrower's financial history, looking at their current financial situation, and forecasting their ability to repay the loan. The goal of a credit analyst is to minimize the risk of default by accurately assessing the borrower's ability to repay the loan.

Credit Analyst job duties include:

  • Reviewing credit reports
  • Analyzing financial statements
  • Calculating debt-to-income ratios
  • Reviewing business licenses and permits
  • Checking for liens and judgments
  • Researching public records
  • Requesting additional documentation from applicants
  • Evaluating credit risk
  • Recommending approval or denial of credit

Credit Analyst Job Requirements

A credit analyst is a professional who performs credit analysis, which is the process of assessing the creditworthiness of individuals and organizations. Credit analysts typically work for banks, financial institutions, and credit rating agencies. They use financial statements, credit reports, and other data to assess the creditworthiness of their clients.

Education: A bachelor's degree in business, economics, finance, or a related field is typically required for this position.

Certification: Certification is not typically required for this position, but some employers may prefer candidates who have earned professional designation such as the Certified Financial Analyst (CFA) designation.

Experience: Some employers may require 1-2 years of experience in a related field such as banking, lending, or financial analysis.

Credit Analyst Skills

  • Analytical skills
  • Profit and loss analysis
  • Financial analysis
  • Finance
  • Asset management
  • Real estate
  • Budgeting
  • Financial modeling
  • Business strategy
  • Business development
  • Investment banking
  • Financial planning

Related: Top Credit Analyst Skills: Definition and Examples

How to become a Credit Analyst

A credit analyst is a professional who works in the financial industry to assess the creditworthiness of individuals and businesses. Credit analysts typically work for banks, credit rating agencies, or investment firms.

To become a credit analyst, you will need to have a strong background in mathematics and financial analysis. You should also be able to effectively communicate your findings to others.

There are a few different ways to become a credit analyst. One option is to complete a bachelor’s degree in business administration or economics with a concentration in finance. Alternatively, you could complete a master’s degree in business administration or economics with a focus on finance.

In addition to completing an academic program, you will also need to gain experience in the financial industry. Many credit analysts begin their careers as financial analysts or underwriters. working for a bank or other financial institution.

If you are interested in becoming a credit analyst, it is important to stay up-to-date on developments in the financial industry. You should also be prepared to pass exams, such as the Chartered Financial Analyst (CFA) exam, which is required for many positions in this field.

Related: Credit Analyst Resume Example

Related: Credit Analyst Interview Questions (With Example Answers)