OVERVIEW
What is a Credit Analyst?
Credit analysts are specifically trained to assess the credit history, credit rating, and overall creditworthiness of their clients. They interpret and evaluate credit data to help individuals, businesses, and other organizations qualify for and repay loans. This credit data includes client spending and saving habits that help suggest whether they should be approved for a loan.
Many credit analysts work for commercial or investment banks, credit rating agencies, credit unions, asset management firms, and financial consulting firms. Others provide their expertise for government agencies, private insurance companies, and corporate finance departments. Credit analysts are well versed in general business and finance practices and have a proficient understanding of economics and accounting principles. They should also be comfortable working with numbers and using data management programs like Microsoft Excel.
RESPONSIBILITIES
What Does a Credit Analyst Do?
Credit analysts spend their time collecting and evaluating financial data—typically via dedicated computer software programs—and meeting with clients to discuss concerns related to their credit. The day-to-day responsibilities of a credit analyst usually include the following:
- Analyzing financial statements
- Assessing credit risk
- Researching industry and market trends
- Scoring and rating credit
- Preparing credit analysis reports
- Collaborating with stakeholders
- Monitor ongoing compliance with regulations
- Performing daily due diligence as required
Is a Career as a Credit Analyst Stressful?
Stress levels in a credit analyst career can change depending on the work environment, volume and complexity of credit assessments, and individual stress tolerance. Some factors may contribute to potential stress in this job, including:
- Workload and deadlines
- Accountability and decision-making
- Risk and uncertainty
- Compliance and regulatory requirements
- Interpersonal relationships
- Sensitivity of financial data
Certain organizations may allow credit analysts to work remotely or from home, which could potentially reduce stress.
EDUCATION & BEST DEGREES
How Do I Become a Credit Analyst?
To become a credit analyst, you should decide how much education you’d like to receive and identify what skills you’d like to hone. You should also keep in mind that education requirements may vary depending on the employer, level of position, area of expertise, and other factors. Consider the following steps as you prepare:
- Step One: Obtain a bachelor’s degree in a relevant field such as accounting, finance, economics, or business administration
- Step Two: Gain relevant work experience
- Step Three: Develop financial analysis and credit analysis skills
- Step Four: Consider earning an advanced degree such as an MBA, a master’s in finance, or a similar degree
- Step Five: Consider acquiring professional certifications such as the Credit Risk Certification (CRC) and Chartered Credit Analyst (CCA)
- Step Six: Build communication and networking skills
- Step Seven: Apply for credit analyst positions
- Step Eight: Prepare for job interviews
Additionally, many credit analysts in established careers find ways to continue their education. For example, they might attend professional development conferences or participate in online seminars.
Best Degrees for a Credit Analyst
Business
Accounting – B.S. Business Administration
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?
- Time: 62% of graduates finish within 24 months
- Tuition: $3,755 per 6-month term
- Courses: 41 courses in this program
Skills for your résumé you will learn in this program include:
- Accounting
- Finance
- Financial Statements
- Communication
- Detail Oriented
- Research
Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.
Business
Finance – B.S.
This online finance program is career-focused so you will gain relevant...
This online finance program is career-focused so you will gain relevant industry skills.
- Time: 62% of graduates finish similar programs within 24 months
- Tuition: $3,755 per 6-month term
- Courses: 41 courses in this program
Some careers and jobs this business degree will prepare you for:
- Management
- Accounting
- Finance
- Spreadsheets
- Financial Analysis
- Problem Solving
The competency-based model at WGU allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at WGU.
Business
Business Management – B.S. Business Administration
Hone your business acumen and garner added respect:...
Hone your business acumen and garner added respect:
- Time: 61% of graduates finish within 19 months
- Tuition: $3,755 per 6-month term
- Courses: 40 total courses in this program
Skills for your résumé this program will teach you include:
- Business communication
- Product development
- Decision making models
- Project management strategies
- Budgeting for business
This online degree program is an excellent choice for kick-starting your organizational management career.
Business
Master of Business Administration
The flexible MBA program you need, focused on business management,...
The flexible MBA program you need, focused on business management, strategy, and leading teams:
- Time: Graduates can finish in 12 months
- Tuition: $4,755 per 6-month term
- Courses: 11 total courses in this program
Skills for your résumé you will learn in this program include:
- Leadership strategies
- Talent management
- Communication
- Data collection and interpretation
- Financial statements
Our competency-based model gives you an innovative learning experience you won't find anywhere else—and our MBA grads tell us they loved accelerating their program to see a faster ROI.
How Much Does a Credit Analyst Make?
$95,080
The median annual wage for financial and investment analysts was $95,080 in May 2022. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $58,950, and the highest 10 percent earned more than $169,940.
What Is the Projected Job Growth?
8%
Overall employment of financial analysts is projected to grow 8% from 2022 to 2032, faster than the average for all occupations.
About 27,400 openings for financial analysts are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
SKILLS
What Skills Does a Credit Analyst Need?
A robust, relevant skill set can help advance a credit analyst’s career and prepare them for any number of on-the-job challenges. Such skills include:
- Financial analysis. Discerning and interpreting numerical data makes up a large part of a credit analyst’s workload.
- Credit risk assessment. Credit analysts should always determine the possibility of risk in lending money or extending credit to clients.
- Industry and market knowledge. Being well versed in principles and practices pertaining to finance and credit analysis is key to success.
- Attention to detail. Analysts need to see and assess small but significant details to solve problems effectively.
- Problem-solving and decision-making. These skills should be well honed and applied daily.
- Communication and presentation. Without clearly communicating their findings through speech and writing, credit analysts won’t be effective at their jobs.
- Relationship building. Establishing and building relationships between coworkers and clients can help nurture trust.
- Time management and organization. Credit analysts must be able to schedule their duties efficiently, especially time-consuming ones.
- Ethical conduct. Since they deal with sensitive financial data, credit analysts should always conform to compliance standards and practice good business ethics.
- Commitment to ongoing learning. Continuing to learn and develop professionally will serve credit analysts well as they advance in their careers.
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No need to wait for spring or fall semester. It's back-to-school time at WGU year-round. Get started by talking to an Enrollment Counselor today, and you'll be on your way to realizing your dream of a bachelor's or master's degree—sooner than you might think!
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Interested in Becoming a Credit Analyst?
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