What is an Entry-level Credit Analyst?
An entry-level credit analyst is a professional in the finance industry who is mainly responsible for evaluating the credit standing and financial records of individuals or companies and organizations to see their risk level and capacity to pay back loans they’re applying for. Using the findings, the credit analyst will also create reports to help banks and financial institutions in deciding whether or not to grant the loan.
Job Responsibilities of an Entry-level Credit Analyst
The tasks of an entry-level credit analyst vary depending on the employer, but in general, here are some of the job responsibilities:
- Assess the credit and financial data of people and companies to know the risk level associated with loaning them money
- Prepare reports covering the degree of risk of clients
- Create financial ratios to assess the financial status of clients
- Fill out and submit loan applications
- Coordinate with clients to verify financial records and address their concerns
If you want to become a credit analyst, you need at least a bachelor’s degree in finance, business or accounting. You must be knowledgeable in various areas, such as statistics, calculus, ratio analysis, economics, and risk assessment.
Before applying for an entry-level credit analyst position, make sure to gain work experience first in related areas such as accounting, accounts receivable, or credit application processing.
A four-year finance-related degree will get you through the door of the industry, but the world of finance is constantly evolving. There is a need to always learn the latest trends and tools to keep up and stay relevant. Several certification courses are available to help you stay ahead of other job candidates. Also, some employers prefer those with certifications.
You can take a certification course in a classroom setting or online. The National Association of Credit Management (NACM) offers the Certified Credit and Risk AnalystSM (CCRASM) designation that is designed for fresh graduates and beginners in credit analysis. You may also want to consider Corporate Finance Institute, which provides online courses not only for credit analysts but also for other professionals in the finance industry.
Common Employers and Career Options
Credit analysts can build their careers in several companies that are involved in financial services, retail and wholesale, business services, as well as energy and utilities.
As you gain more work experience and earn advanced certifications, you can move to a higher position such as a credit manager. You can also rise up the corporate ladder into more senior positions related to risk or investment management.
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 CFI resources below: