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A credit analyst assesses the creditworthiness of loan applicants, sets interest rates, and determines repayment terms. They research applicants’ financial information, make decisions, and convey them to customers. Salaries are usually hourly and can vary based on experience.
A credit analyst is an individual who analyzes the creditworthiness of those applying for credit. The analyst can review the value of individuals or companies. This individual will usually be trained on the job, but some credit analyst positions may require a college degree in finance, accounting, or a similar field. In many cases, the analyst’s decision will be the final decision on whether or not to approve a loan.
In addition to approving the loan, a credit analyst will also have a lot of influence on the terms of the loan. The individual can set an interest rate based on certain risk factors. That rate will likely be lower for borrowers who pose a lower risk to the lender and higher for those who do. The analyst can also set a minimum or maximum repayment term. This can also be based on financial information received.
Typically, a credit analyst’s day is filled with research on individuals who are applying for a loan product. May be talking to employers to verify income. This will likely involve taking reports from credit reporting agencies and analyzing the borrower’s FICO score to determine the risk the prospective borrower may be at. The overall objective is to find a solution that sufficiently protects the lender while still providing the borrower with the necessary capital. This verification process can be done both online and over the Internet.
Once a decision is made, the credit analyst may be responsible for conveying that decision to the customer. In many cases, this is done through a letter. Also, the analyst may be off-site. If this is the case, the analyst usually sends the decision information to the personal banker. That banker will transmit the decision to the applicant. Once the decision is made, the applicant can appeal in some situations. The burden of proof will be on the applicant to provide legitimate reasons why the decision rendered was inappropriate. In most cases, those denied simply seek loans from another company.
Credit analyst salaries are usually paid by the hour. So earning potential is based on part-time or full-time work. In many cases, an analyst works full time. Entry-level positions can start below what someone with many years of experience can earn a little more.
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