A credit analyst is someone who checks the creditworthiness of people who are applying for credit. Individuals or businesses can have their worth assessed by the analyst. Although most credit analysts are trained on the job, some positions may require a bachelor’s degree in finance, accounting, or a related field. In many cases, the analyst’s decision will be the deciding factor in whether or not a loan is approved.
In addition to approving the loan, a credit analyst will have significant influence over the loan’s terms. An interest rate can be set by an individual based on certain risk factors. Borrowers who pose a lower risk to the lender will likely pay a lower rate, while those who do will pay a higher rate. The analyst can also set a repayment term that is either minimum or maximum. This could also be based on the financial data received.
A credit analyst’s typical day consists of conducting research on individuals who are applying for a loan product. This could include speaking with employers to confirm income. It will also most likely entail obtaining credit reports from credit reporting bureaus and examining the borrower’s FICO score in order to assess the risk posed by the potential borrower. The overall goal is to find a solution that adequately protects the lender while also providing the necessary capital to the borrower. This verification procedure can be carried out both online and via the Internet.
The credit analyst may be in charge of communicating the decision to the client after it has been made. In many cases, this is accomplished through the use of a letter. Furthermore, the analyst may be located elsewhere. If this is the case, the analyst will typically inform the personal banker of the decision. The applicant will be informed of the decision by that banker. In some cases, the applicant may file an appeal after the decision has been made. The applicant will bear the burden of proof in coming up with legitimate reasons why the decision was erroneous. Those who are denied will, in most cases, seek loans from another company.
Credit analyst salaries are usually based on the number of hours worked. As a result, whether the job is part-time or full-time determines the earning potential. An analyst will frequently work full-time hours. Entry-level positions may pay less than those with many years of experience, but they may pay slightly more in the long run.