What Does a Credit Analyst Do?

Credit Analyst is in charge of evaluating the application of loan and credit applicants with the standard range of prose and purpose of the application, Credit viability, transparency of payment, and clients’ suitability (debt-free).

• He is a prominent decision-maker of client’s credits, deals with computer programs to maintain the history of customers, and keeps the company’s monetary records updated.
• Credit Analyst is vital for the healthy economic growth of the company. and ensures that the company won’t extend the commercial loan, home loans, car loans.
• The following are some of the important responsibilities of a Credit Analyst.

Assess the worth of Credit Risk

• The prominent role of the analyst is to assess the worth of credit risk by looking at payment history, purchase activities, repaying debts history, earnings from the corporation and firm.
• Further, make a recommendation whether the company should provide or not provide credit terms to the customers. In short, He is a risk analyst.

Audit Monetary Data

• Analysts are hired by commercial and cooperative organizations to audit the monetary data of potential sales leads.
• He has to assess the client's payment history, paid debts, monthly and annually earning record, saving grace, managing accounts, monetary statements, market data, and creditworthiness for credit terms and conditions of the company organization.

Study Loan or Credit lines of Existing Clients

• The Analysts are often appointed as a studying loan or credit line of existing customers to qualify for an increase in their loan or credit line.
• He has to study and evaluate the lender's saving grace, payment & repayment history, and also keep a record of default credits.

Types of Credit Analyst

There are various types of Credit Analysts i.e. Commercial Credit Analysts, Credit and Collection Analysts, and Credit Research Analysts. The following sections give the details of the types of Credit Analysts.

Commercial Credit Analyst

• The commercial analyst has to review credit data of companies or entities for commercial loan requests to approve or decline the application.
• From the applicant’s annual or monthly financial history to credit bureau reports to creditworthy.
• An analyst is tasked to analyze if the borrower’s credit can withstand or support the extension of a line of credit.

Credit and Collection Analyst

• The analyst is trained to inspect a person’s or company’s riskiness to extend credit and collect repayments.
• Credit and collection analysts work closely with companies to help coordinate collections calls and work with customers to make repayments. 
• They help collect relevant documentation regarding disputes and unpaid statements, help determine both creditworthiness and act as an intermediary between providers and customers.

Credit Research Analyst

• The analyst should take an in-depth look at each credit applicant's personal and financial background to help the lender determine whether the applicant is worth the credit or the risk of lending.
• The prime function of a credit research analyst is to research the applicant.
• It means collecting and reviewing every bit of the information, including income statements, balance sheets, and other relevant data.