To become a credit analyst, one needs academic credentials, relevant work experience, critical thinking skills, and to identify potential employers. This job involves reviewing financial information, assessing risk, and determining credit limits. Look for employment opportunities in financial services, large corporations, and companies that sell products or services to other companies. Prepare for the interview by researching the company and being knowledgeable about credit analysis and financial reporting trends.
Typically, there are four steps to landing a credit analyst job: obtaining the necessary credentials, having relevant work experience, having excellent critical thinking skills, and identifying potential employers. A credit analyst is responsible for reviewing the financial information provided by the company or individual applying for credit, assessing the level of risk and determining the credit limit. This position is found in the financial services industry and in large corporations. It is important to note that the vast majority of business-to-business sales are based on a line of credit.
The academic credentials needed to secure a credit analyst job often include post-secondary training in business, management, finance or accounting. These programs are available at a wide variety of community colleges and universities. The average duration of the program is three years and generally provides training in a variety of business management functions.
The types of work experience needed to land a credit analyst job include director of accounts receivable, accounting clerk, office administrator, sales representative, and other accounting-related positions. In a large organization, candidates with business or financial analysis skills and experience are generally considered excellent candidates for this type of work. All of these positions require computer software and accounting skills.
Critical thinking skills are an important part of a credit analyst job. He or she needs to assess a variety of different pieces of information, assign priorities, and then make an assessment of the appropriate level of risk and credit to extend to the company. It is important to note that lending criteria vary widely depending on the credit instrument, customer profile and type of business.
Most people assume that financial services companies are the only source of employment for a credit analyst. This is not the case. Look for large companies that sell products to other companies. For example, an auto parts manufacturer will have a variety of different customers, all of whom are purchasing on account. Other options include organizations that provide services to other companies and corporate headquarters for large retail chains.
Prepare for your interview by researching the company in advance. Learn as much as you can about your customer base, the impact of the economy on your customers, and any major losses or bankruptcies. In the interview, talk about your experiences and how they are relevant to the current position. Be prepared to answer specific questions about credit analysis, trends in financial reporting, and your skills with computer software programs.
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