The job description of credit analyst varies according to the employers. Usually, the companies that need credit analyst are credit card companies, investment companies, banks, consultancy firms and other financial departments.
Likewise, other companies also hire credit analyst including insurance companies as well as credit rating agencies. The job role of a credit analyst is similar to financial analyst.
In this sense, it is important to know the job description of credit analyst according to the nature of business that his employer has.
1. Lending firms and banks
The job description of a credit analyst in banks and lending firms includes assessing credit rating and report of a particular borrower. He is also responsible for verifying and checking the source of income and income stability of the borrower.
The credit analyst also checks other debts that the borrower owes. In some cases, other duties may be added to the job of the credit analyst. These duties include assessing the collateral and future projected value of the loan. Likewise, he assesses the market value of the given collateral.
2. Credit card companies
A credit analyst working in credit card companies conducts analysis of numerical and statistical data. The analyst is also responsible in determining the credit limits suitable to the person according to the monthly income and credit ratings, as well as credit report.
3. Audit and rating firms
Most companies are hiring audit and rating firms to chum out credit reports. That is why audit firms also need the services of credit analyst to analyze the financial statements and audited reports in order to determine the ratings. This makes sense the importance of hiring credit analyst that helps in assessing the company’s condition on a daily basis.
4. Finance and accounts departments
The job description of credit analyst working in finance and accounts departments includes assessing the client’s credit worthiness.
Likewise, the credit analyst also determines if the client deserves for approval or not. In this way, bad debts can be prevented. With all the job descriptions cited above, it means that the role of a credit analyst is not that easy.
That is why it requires skills in applying accounting principles in order to interpret the client’s financial statements, professional judgment and business insight. In this sense, a credit analyst should have a degree in Finance or Accounting and working experience in debt management and financial collections.
While doing the job, a credit analyst coordinates with other persons like the account managers, product specialists and other department members. He can also help in solving issues related to legal, compliance and market-risk before endorsing the credit.
In this sense, it is necessary for a credit analyst to have strong interpersonal skills. He should be efficient in decision-making, analytical and interpersonal skills.
In the same manner, he should be able to discuss technical information clearly and precisely to the clients. Indeed, the tasks of a credit analyst are very important in any business particularly those involved in lending and banking business.