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Credit and Collections Analyst

A professional who assesses a person's or a company’s riskiness in terms of both extending credit and collecting repayments

What is a Credit and Collections Analyst?

A credit and collections analyst is tasked with the responsibility of assessing a person’s or a company’s riskiness in terms of both extending credit and collecting repayments. The analysts must systematically review a customer’s financial history, financial statements, and any other information that would pertain to receiving a line of credit.

 

Credit and Collections Analyst

 

Credit and collections analysts also work closely with companies and departments within them to help them effectively utilize lines of credit, as well as making sure that any arrears owed to them are recovered in a timely way.

Credit and collections analysts also may work closely with different collections agencies. They often help coordinate collections calls and also work with customers to make repayments happen. They also assist in collecting pertinent documentation in regard to disputes and unpaid statements, helping to determine both creditworthiness and acting as a middleman between providers and customers.

 

Summary: 

  • Credit and collections analysts must review the financial histories of individuals and companies to help determine their creditworthiness and how likely/able they are to repay their debts.
  • Because the analysts help to determine worthiness and act as a sort of mediator when it comes to the collections process, they need to possess of a number of different skills, including strong math and people skills.
  • Credit and collections analysts must possess a high school diploma or equivalent; some college courses or a college degree are a bonus. On-the-job training is also required.

 

Required Skills for Credit and Collections Analyst

Because of the multifaceted work they do, credit and collections analysts must possess a variety of skills. They must be able to work closely with both parties: those who owe and those who are owed. Clearly, strong math skills are important, but excellent people skills are also important.

Understanding customers and why they may be in default on lines of credit is also important. Along with people skills, the ability to understand circumstances, read people, and be compassionate are also important for a credit and collections analyst. The skills all come in handy, especially when working as a sort of mediator between a customer in arrears and a company that is looking to get paid for the goods or services it previously provided.

 

Education and Training

A credit and collections analyst must possess a high school diploma, along with at least a few months of training on the job.

In most places, any collections agency or company looking to hire a credit and collections analyst will look for individuals who have taken at least some college courses. Accounting, mathematics, computer skills, and communication courses are all regarded highly. Graduating from college with an associate’s or bachelor’s degree in any of the relevant fields often puts an individual ahead of other candidates when it comes to the hiring process.

On-the-job training usually lasts anywhere from one to three months and is typically done by the business that hires the analyst. It enables the analyst to get to know the company’s policies and procedures. Fair debt collection practices and negotiation techniques are often included in the training.

 

Additional Resources

CFI offers the Financial Modeling & Valuation Analyst (FMVA)™ certification program for those looking to take their careers to the next level. To keep learning and developing your knowledge base, please explore the additional relevant resources below:

  • Commercial Credit Analyst
  • Financial Analyst vs. Credit Analyst
  • Loan Servicing
  • Quants