Credit Analyst Job Description

Assessing the creditworthiness of a borrower

Credit Analyst Job Description Overview

This is a typical example of a credit analyst job description based on real postings from lenders like HSBC, JPMorgan Chase, and Wells Fargo.  To prepare yourself for this job, launch our financial analysis courses online!


credit analyst job description


Key responsibilities

  • Conduct thorough analysis of financial statements and assessment of credit requests, including new requests, change requests, refinancing and annual due diligence
  • Provide recommendations tied to analysis and assessment of credit risk
  • Present analysis, findings, and recommendations to managers, especially findings that involve a borrower’s ability to repay
  • Keep up to date with company’s lending protocols
  • Reconcile credit files and identify discrepancies and variances
  • Develop and prepare spreadsheets and models to support analysis of new and existing credit applications


Relevant skills, knowledge, and experience

  • Bachelor’s degree in finance, accounting or other business-related fields
  • Two to five year of strong quantitative experience
  • Strong proficiency in MS Office and general computer use
  • Ability to manage competing deadlines in a high-pressure environment, with varying ranges of supervision
  • Strong attention to detail and ability to notice discrepancies in data
  • Impeccable understanding of financial statements, ratios and concepts

To prepare yourself for this job, launch our financial analysis courses online!


What is credit analysis?

Credit analysis is a very particular area revolving around a firm’s financial risk analysis. The procedure involves evaluating the risks that businesses involved in loan financing are likely to experience by initiating background research on the retailer or commercial customer. In other words, a financier must perform due diligence on rating the credit of the borrower.

A credit analyst is responsible for several tasks in the company, which includes providing guidance on credit risks related to lending programs that involve massive amounts of money.

The Credit Analyst is a key contributor to investments which begins when a company has been approved of the security required. Through expert analysis, the process provides supporting evidence of the given sectors that contribute to the decisions involved in asset allocation. A bank, for example, will hire a credit analyst to help assess the different firms and individuals it can offer loans to and, thus, generate a return on using their cash assets.


What information does a credit analyst use?

The following are just a few types of documents that credit analysts take information from annual reports, financial statements, profit and loss statements, management accounts and other additional market data reports.


What additional factors must be analyzed?

Other critical components in credit analysis, aside from direct analysis of company performance, are:

  • Developing models, both mathematical and statistical ones that directly relate to the risk being measured;
  • Recording anticipated environmental changes;
  • Analyzing periodic market patterns; and,
  • Tracking legislation and policies.


What are the typical credentials of a credit analyst?

A credit analyst will usually have a bachelor’s degree, with a background in finance, accounting or other related fields. These backgrounds are particularly useful in granting the analyst experience in ratio analysis, financial statement analysis, risk assessment, and economics. Naturally, a working knowledge of accounting principles and financial techniques also comes in handy.

Unlike accounting and finance, where there are specific certifications for the field, there is no specific charter for a credit analyst. However, some banks or institutions may prefer applicants with Master of Business Administration (MBA), or a practical designation such as the Financial Modeling and Valuation Analyst (FMVA)™, which covers topics that are relevant to credit analysis such as the interest coverage ratio or the creation and analysis of a debt schedule.

This credit analyst job description is inspired by responsibilities outlined by companies like HSBC, JPMorgan Chase, and Wells Fargo.

To prepare yourself for this job, launch our financial analysis courses online!


Additional resources

Thank you for reading this credit analyst job description. CFI is the official provider of the Financial Modeling and Valuation Analyst (FMVA)™ designation, designed to transform anyone into a world-class financial analyst.

To continue advancing your career, explore these additional resources:

FMVA certification program

Advance your career in investment banking, private equity, FP&A, treasury, corporate development and other areas of corporate finance.

Get certified as a financial analyst with CFI’s FMVA Program.