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What does a Credit Analyst do?

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Talent.com talent.com
Answered October 25 2021
Career Expert at Talent.com
Credit Analysts spend a great deal of their time meeting and interviewing applicants for credit lines, evaluating their financial status, references, credit, and repayment ability. Plenty of research goes into this process to gather and analyze client data and make effective and profitable decisions about their readiness for a loan.  
This profession requires their Credit Analysts to maintain regular communication with other financial institutions, particularly when requesting details about their clients' financial records. They will also need to keep the lines of communication open with clients, especially when they might be waiting for approval that will make or break how they go forward with significant investment purchases.  
Day in and day out, Credit Analysts are promoting services to assist clients, from determining the most suitable credit line to meet their financial objectives and needs to issuing credit cards depending on the institution they're representing. In both scenarios, analysts will need to process and submit credit applications management with any observations that impact the credit approval. 
Finally, it is a Credit Analyst's responsibility to keep detailed files and clients' information up-to-date by completing documentation, preparing detailed reports, and maintaining detailed computerized records. All of this while also providing quality customer service according to company policies.  
Roles and responsibilities of a Credit Analyst
Here’s a non-exhaustive list of everyday tasks Credit Analysts are required to complete:   
  • Support new and current clients on credit products  
  • Schedule meetings with clients to obtain information on their financial background and to identify their needs and objectives. 
  • Assess applicants’ earning and spending capacity, as well as determine their assets and financial liabilities.    
  • Promote credit lines and products attending to clients’ financial needs and goals.    
  • Provide accurate and prompt analysis of clients’ financial records.  
  • Examine financial statements, debt schedules, projections, tax returns, balance sheets, and other financial documentation.  
  • Analyze trends observed in the documentation reviewed. 
  • Highlight abnormalities or information gaps discovered. 
  • Determine risk factors. 
  • Examine clients’ payment sources. 
  • Determine interest rates and applicable ratios based on clients’ financial records. 
  • Prepare detailed reports on the findings.    
  • Assist the Manager, before the credit’s approval or rejection, by ensuring the client meets the requirements to obtain credit.   
  • Collect information and process each file to the closing stage.    
  • Contact other financial institutions to verify the financial background of credit applicants.  
  • Examine applicants’ assets and finances. 
  • Analyze the applicants’ capability to repay credit lines by conducting a thorough assessment of creditworthiness.   
  • Submit a detailed report regarding any abnormality on the processed file.    
  • Maintain detailed records on the applicants’ backgrounds.  
  • Maintain accurate and up-to-date lists of the annual reviews required according to loan and credit regulations.    
  • Compile, copy, file, and sort records of the applications in progress and the ones already approved.  
  • Prepare monthly and quarterly credit reports.    
  • Ensure compliance with all internal control and established policies related to credit products to guarantee transparency in every application processed.