Credit analysts - Vault (2024)

FAQs

Do credit analysts make a lot of money? ›

The estimated total pay for a Credit Analyst is $89,540 per year, with an average salary of $66,692 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.

A credit analyst's primary role is to assess the creditworthiness of an individual or company. Credit analysts gather different financial information from a customer, such as earnings and past repayment history, to assess their ability to honor financial obligations.

Being a credit analyst can be a stressful job. You often must decide whether a person or a company can make a purchase, and at what interest rate, which is a significant responsibility.

Credit analysts can expect to work a 40-hour week, but they may have to put in overtime if a project has a tight deadline. A commercial credit analyst may have to travel to the business or corporation that is seeking a loan in order to prepare the agreement.

Although some employers may prefer candidates to have a bachelor's degree, prospective certified credit analysts may also be able to earn their certifications by attending a two-year associate degree program in accounting or finance, followed by extensive work experience.

The best Credit Analyst jobs can pay up to $177,500 per year. As a credit analyst, you evaluate customer credit history to determine the risk level for giving out loans or lines of credit to clients. You'll use statistical software to help you decide which clients are eligible for loans and which ones aren't.

Credit analysis is governed by the “5 C's of credit:” character, capacity, condition, capital and collateral.

The Credit Analyst Career Path: Day-to-Day Work

You'll still analyze clients' financial statements and create projections for different scenarios, write memos, monitor borrowers, and build relationships to sell them other services, such as corporate credit cards or cash management.

Demographic information on Credit analysts in the US. The workforce of Credit analysts in 2022 was 36,749 people, with 51.5% woman, and 48.5% men. The average age of male Credit analysts in the workforce is 37.9 and of female Credit analysts is 42.8, and the most common race/ethnicity for Credit analysts is White.

What type of person makes a good credit analyst? ›

Credit analysts should be good at problem-solving, have attention to detail, and have the ability to research and document their findings. They should be able to understand and apply the terms used in finance, banking, and business.

An associate or a bachelor's degree is required for entry-level positions, while significant relevant work experience may be required for placement into senior positions in the credit department. Most companies offer on-the-job training for entry-level positions to make the transition easy for recent graduates.

As a work from home credit analyst, you review financial data to assess the creditworthiness of an individual or business. In this role, you work remotely and communicate with the lender via phone or online.

Gathers and analyzes loan applicants' financial data to evaluate risk. Assesses creditworthiness of individuals, companies, and institutions. Collaborates with other financial experts to approve or deny loans. Makes recommendations about whether to increase, adjust, extend, or close lines of credit.

The projected credit analyst job growth rate is -5% from 2018-2028. About -77,200 new jobs for credit analysts are projected over the next decade. Credit analyst salaries have increased 7% for credit analysts in the last 5 years. There are over 61,161 credit analysts currently employed in the United States.

Credit Risk Analyst Compensation

Credit risk analyst positions can be fairly lucrative. The average annual compensation for a credit risk analyst is about $82,000. Since credit risk analysis includes so many different positions, it's helpful to keep in mind that this number is an average.

Senior data architects are at the pinnacle of the data analytics field, with an average US annual salary of approximately $157,901. The total pay for a senior data architect can range from $148,000 to $211,000 annually, including potential additional income from bonuses and profit sharing.

According to the Bureau of Labor Statistics (BLS), on average, financial analysts earn around $112,950 annually, but this figure ranges from $76,880 to $129,970. Besides the base salary, they also may receive a sign-on bonus, earn an annual performance bonus, and secure an equity package.