A person working as credit analyst is responsible for gathering and analyzing financial data about clients. It includes paying habits or history of earnings and savings information and purchase activities.
After the data has been gathered, a credit analyst evaluates the data and recommends a course of action for the customer. A credit analyst works with a bank or organizations that issue credit cards or collects data about clients who have defaulted in their payments. After analyzing the data the credit analyst might recommend closing the card or reducing the credit limit. Credit analysts are not limited to clients who have defaulted in their payments. A credit analyst can also be responsible for potential customers seeking new credit or customers who are being considered for credit line extensions. In short, he shall be conducting economy, industry and company analysis.
Some skills that a credit analyst must possess include the following:
- Quantitative Skills.
- Written and Oral Communication Skills
- Knowledge of Industries
- Multitasking and Prioritization Skills
- Experience with Financial Software
Benefits of Being a credit analyst
One major advantage to being a credit analyst is that you are not limited to one type of company. A credit analyst does not have to work only for a bank or credit rating agency. A credit analyst can work for any company that offers financial services. This means that a credit analyst can work with an automobile manufacturer, retail store, utility or even an energy company.
Another benefit of being a credit analyst is that it can lead to higher and exciting career paths like investment banker, portfolio manager and loan and trust manager.
While it sounds like a lucrative and easy job to do. Being a credit analyst can also be a stressful job. As a credit analyst the decisions you make can determine the interest rate at which an individual or a company borrows. Whether the client gets a loan or a credit line and what amount he or she will receive. A credit analyst has huge responsibilities and the position should not be taken lightly. This can be a lucrative job but just like any other one it requires a lot of hard work.