A credit analyst career is a great one to pursue. If this is your dream job, one of the questions you may consider is how much a credit analyst salary is as well as what it takes to become one.
While this might be quite a lucrative and fulfilling career, your salary as a credit analyst may vary depending on factors ranging from your expertise in the field, academic qualifications, experience, location, industry, and other factors.
However, we have gathered resources to help you determine what you can expect to earn as a credit analyst, depending on some of the aforementioned factors. Also, this article will help you understand in detail who a credit analyst is, their duties, and how to become one.
Let’s get right in!
Who is a Credit Analyst?
A credit analyst is a member of the financial industry who evaluates a loan applicant’s creditworthiness. They are in charge of compiling all data regarding a loan applicant’s credit history, payment history, income, and other financial information to determine whether they may be authorized for a loan.
The credit analyst then creates a loan application and submits it to a loan officer for approval after compiling this data.
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What Do Credit Analysts Do?
Being proficient in the following duties is necessary to work as a credit analyst:
- Evaluating potential loan risks, examining financial statements as well as credit information.
- Analyzing application files to create a suggested payment schedule.
- Utilizing specialist computer programs to assess the financial situation of applicants.
- Outlining the dangers of lending money to each applicant and detailing papers should be prepared.
- Making loan requests and summaries of credit analysis.
- Completing and submitting loan applications for consideration.
What is an Average Credit Analyst Salary?
Below you will find average credit analyst salary reports from different verified sources. This can help you determine how much you can expect to earn as a credit analyst especially depending on your skills, academic qualifications, location, industry, and even more importantly, your previous work experiences.
- According to Indeed.com, an average credit analyst salary in the US is $62,761per year and $24.33 per hour.
- Salary.com says an average credit analyst salary is $54,804 per year.
- Talent.com reports an average credit analyst salary of $59,955 per year and $30.75 per hour.
- According to Corporatefinanceinstitute , an average credit analyst salary ranges from $50,000 to $55,000 per year.
- Careerexplorer reports an average credit analyst salary of $77,400 per year in the US.
- According to Zippia.com, an average credit analyst salary is $62,866 per year and $30.22 per hour.
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Entry Level Credit Analyst Salary
Entry level credit analysts are a set of new credit analysts who are still learning the ropes and obtaining foundational knowledge in the field.
Usually, they are assigned the task of gathering all the data necessary to handle a credit request. They interact directly with the customer and are the ones that accept the loan application from the customer. By exposing the company’s products to potential customers, junior-level analysts are also in charge of driving business sales. They gather the client’s financial data, recommendations, and other crucial documents to make the verification procedure easier.
- According to Talent.com, an entry level credit analyst salary starts at $45,009 per year.
- Corporatefinanceinstitute reports an entry level credit analyst salary ranging from $25,000 to $30,000 per year.
- Careerexplorer reports an entry level credit analyst salary of$47,630 per year and $22.90 per hour.
- According to Zippia.com, an entry level credit analyst salary is $42,000 per year.
Senior Credit Analyst Salary
A senior credit analyst is an expert analyst in charge of the credit analysis career and answers to the organization’s senior management group.
Basically, senior credit analysts are better prepared to join the senior management. For senior credit analysts, the typical length of employment is 12 years.
A senior credit analyst’s primary duty is to examine loan applications and approve those that adhere to the standards established by the business. The credit application has undergone departmental review and information collection by the time it arrives at the senior credit analyst’s desk.
- According to corporatefinanceinstitute, a senior credit analyst salary is $69,000 per year, adding that credit analysts who work in the private sector earn higher than their counterparts who work in the government.
- Careerexplorer reports a senior credit analyst salary of $101,250 per year and $48.68 per hour.
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Bank Credit Analyst Salary
A bank credit analyst is simply a financial expert with expertise in assessing the creditworthiness of people, businesses, or securities is known as a bank credit analyst. They examine a borrowers’ credit and financial history to determine whether they can pay their debts.
According to Ziprecruiter, a bank credit analyst makes $63,659 per year and $30.61 per hour.
Commercial Credit Analyst Salary
A commercial credit analyst gathers and assesses credit data for corporate borrowers. They assess loan requests and make risk assessment suggestions. They are also responsible for evaluating a company’s financial standing in comparison to other businesses operating in the same sector.
- According to Payscale, the average commercial credit analyst salary is around $55,400 per year as of 2019.
- Zippia reports an average commercial credit analyst salary of $66,406 per year and $31.93 per hour while reporting an entry level commercial credit analyst salary of $45,000 per year.
- According to Ziprecruiter.com, a commercial credit analyst earns $61,647 per year and $30 per hour.
Where Does a Credit Analyst Work?
A credit analyst can work in:
- Investment companies
- Investment and commercial banks
- Credit card institutions
- Credit rating agencies
Also, they can work in businesses such as energy companies, retail stores, and car dealerships to help them extend credit to customers.
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How to Become a Credit Analyst
Follow these steps to become a Credit Analyst:
- Obtain your bachelor’s degree: The first step toward becoming a credit analyst is earning a bachelor’s degree. Credit management, finance, business, accounting, economics, and statistics are a few possible majors.
- Gain some work experience in a related field: A great strategy to improve your chances of being hired as a credit analyst is to gain expertise in the accounting or credit application processing field.
- Obtain credit analyst certification: Obtaining a certification is a terrific method to increase your competitiveness as a job applicant, while it is not always necessary. The Certified Credit and Risk Analyst certification, for instance, is provided by the National Association of Credit Management (NACM) and certifies you as an expert in interpreting and analyzing financial accounts.
What Skills are Required to Become a Credit Analyst?
The following are the skills you need to possess to become a credit analyst:
- Accounting
- Analysis skills
- Financial analysis
- Proficiency in Microsoft Excel
- Banking
- Cash flow analysis
- Communication skills (Oral and written)
- Computer skills
- Credit analysis
- Customer service
- English
- Lending
- Multitasking and prioritizing
- Analytical and quantitative skills
- Knowledge of specific industries
- Detail oriented
- Problem-solving
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Conclusion
The role of a credit analyst is as tasking as it is fulfilling. This guide has been prepared to help you understand the common factors that could affect your salary as a credit analyst and how to determine what to expect depending on those factors. We hope you found it helpful.
FAQs Credit Analyst Salary |2022
According to Ziprecruiter, a bank credit analyst makes $63,659 per year and $30.61 per hour.
Credit analysts assess the credit worthiness of individuals or businesses seeking loans. Credit analysts consider a number of factors when evaluating and making decisions regarding customer credit applications, including the purpose of the application, credit viability, customer payment history, and customer credit-worthiness.
Yes
Credit analysts make a respectable living with excellent perks and potential for promotion. Credit analysts occasionally pursue rewarding careers as loan managers, investment bankers, or portfolio managers.
Accounting
Analysis skills
Financial analysis
Proficiency in Microsoft Excel
Banking
Cash flow analysis
Communication skills (Oral and written)
Computer skills
Credit analysis
Customer service
English
Lending
Multitasking and prioritizing
Analytical and quantitative skills
Knowledge of specific industries
Detail oriented
Problem-solving
While a credit analyst only studies chances for debt (credit), a financial analyst produces analyses on a wide range of activities, including budgeting, forecasting, investing, valuation, mergers & acquisitions, and more.
References
- indeed.com – Credit Analyst Salary
- corporatefinanceinstitute.com – Credit Analyst Salary
- careerexplorer.com –
- ziprecruiter.com – Bank Credit Analyst Salaries
- Zippia.com – Credit Analyst Salries
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