A finance professional who determines the creditworthiness of a borrower (an individual or a company)
Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets.
A credit analyst is a finance professional whose primary function is to assess requests for credit and, after reviewing and analyzing the financial statements, determine through due diligence if an individual or company is worthy of receiving financing. It may be the first-time issuance of funds or refinancing. On a broader scale, credit analysts assess how risky a company is, determining through data analysis a company’s financial stability.
A credit analyst is responsible for assessing an individual or company’s overall financial health and creditworthiness, specifically in regard to new requests for financing or a line of credit.
Among a variety of duties, credit analysts make recommendations about individuals/companies that should and should not receive credit and present their findings to management and executives.
Obtaining a bachelor’s degree in finance or accounting is common among credit analysts, along with training in data analysis using programs such as Excel.
Credit Analyst Job Description
Credit analysis encompasses a variety of important functions. A credit analyst must use the financial data from an individual or company to determine their creditworthiness. It applies to all the various ways that credit may be sought – secured or unsecured loans, refinancing, credit cards, or a line of credit.
Other responsibilities for a credit analyst include:
Offering up recommendations associated with an analysis of credit risk
Giving presentations of findings – regarding risk and creditworthiness – to managers and company executives
Staying abreast of company protocols regarding lending
Generating documents and spreadsheets to clearly communicate analysis of financial data, specifically in regard to credit risk and creditworthiness
In order to qualify for a credit analyst position, an individual typically needs to possess at least a bachelor’s degree, with a major usually in accounting, finance, or a related financial services field.
Whatever the specific degree is, the individual must possess a solid background in mathematics and finance and a working knowledge of how to analyze numbers and data using programs such as Microsoft Excel. Credit analysts must become well acquainted with financial statement and ratio analysis, as well as gain as a good working knowledge of both microeconomics and macroeconomics. In the United States, thorough knowledge of the Generally Accepted Accounting Principles (GAAP) and other financial techniques is also crucial.
Credit analysts don’t usually obtain any specific certifications in their field. The absence of certifications distinguishes the position from other jobs in finance or accounting, such as that of Certified Public Accountants (CPAs). Depending on where the credit analyst works or is looking to be hired, it may be desirable or even required, to possess a Master of Business Administration (MBA) degree. They may also seek a certification such as CFI’s Financial Modeling and Valuation Analyst (FMVA) designation.
CFI offers the Commercial Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following resources will be helpful:
Take your learning and productivity to the next level with our Premium Templates.
Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI's full course catalog and accredited Certification Programs.
Already have a Self-Study or Full-Immersion membership? Log in
Access Exclusive Templates
Gain unlimited access to more than 250 productivity Templates, CFI's full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.