If you are interested in becoming a financial analyst, one specific job which you might enjoy is the role of credit analyst. Credit analysts are responsible for analyzing financial information pertaining to individuals or companies that are applying for credit or loans. With this information, the analyst assesses whether a lender should consider extending credit or not, and how much risk the loan will entail. Companies use this information to decide whether or not to grant a loan and how much interest to charge and what limits to set.
Why Become A Credit Analyst
Credit analysts make good money, and this is a field which is growing faster than the average for all other occupations, because these days lending products are in higher demand than ever. As a credit analyst, you will have a chance to assist lenders with making important business decisions, and you may have the chance to help consumers and firms to procure the financial resources they need to move forward. To excel as a credit analyst, you will need to be detail-oriented and great at working with numbers. You will also need to be able to think through multiple possible future scenarios to assess risk for your firm.
Credit Analyst Work Environment
Credit analysts work in office environments, typically at banks, insurance companies, and other financial institutions. Most credit analysts work full time.
Credit Analyst Salary
According to the US Bureau of Labor Statistics (BLS), the annual mean wage for credit analysts is $69,500. The median annual wage for all financial analysts is $74,350. That does not make credit analyst the most lucrative position in the field, but it is still undeniably a good wage. This is a great opportunity to make a steady, comfortable income.
Credit Analyst Career Outlook
The BLS groups credit analysts under financial analysts as a broad category. For that field, the agency reports a growth rate of 23%, which is faster than the average for all other occupations. Financial products are in increasing demand everywhere, and credit analysts with geographically specific knowledge are in particular demand.
To become a credit analyst, you will need to enroll at an accredited university. A degree in finance, business administration, or a similar field is best. Most credit analysts enter the field with a four-year bachelor’s degree. There is no such thing as a bachelor’s degree in credit analysis, so it is up to you to select a program that will satisfy the requirements. Whatever you take will need to include courses in accounting, mathematics, business, and finance. Related work experience can also help you to get a job, so you may want to apply for an internship while you are in college. This can help you get your foot in the door and can help you stand out from the competing job candidates. And of course, you will want to make sure you maintain a strong credit rating yourself, since a poor rating would obviously call your abilities into question when you apply for a job.