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AccountancyISCO 3312

Credit analyst

A credit analyst is a person who assesses credit applications and advises a financial institution on whether to lend to a given customer.

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Rate 5 of the 16 essential skills of this occupation (European ESCO data). No account needed.

apply credit risk policy

advise on risk management

advise on credit rating

analyse loans

synthesise financial information

About credit analyst

The credit analyst starts by gathering information. The analyst collects data about the applicant: financial documents, existing obligations, security, and for a business also accounts and cash flows. The analyst obtains information from other departments and institutions — registers, credit bureaux, previous lenders — and analyses the credit history of potential customers.

The analyst then analyses the loan and the financial risk: the capacity to service an instalment, sensitivity to a change in rates and exchange rates, the value and liquidity of the security, and the probability that a customer stops paying. The analyst follows the institution's credit risk policy and checks the application against its guidelines and against the regulations, and recommends the type of agreement the institution should conclude: amount, term, security, additional conditions.

The analyst also advises on credit ratings, maintains customer credit histories and follows the development of the portfolio: arrears, changes in accounts, signs of deterioration. Knowledge of insolvency law is part of the job.

Key Work Functions

Core areas of responsibility for a credit analyst.

1

Credit Application Review and Analysis

  • Evaluate loan applications against institutional lending guidelines and regulatory requirements
  • Analyze applicant financial statements and calculate debt-to-income ratios
  • Assess credit history and previous payment behavior patterns
  • Determine loan-worthiness and present risk assessment recommendations
2

Financial Data Collection and Verification

  • Request and obtain financial information from loan applicants and third parties
  • Verify income documentation, employment status, and asset ownership
  • Consult with other departments and external institutions for additional applicant information
  • Maintain accurate and complete credit files and documentation
3

Credit Risk Assessment and Policy Application

  • Apply credit risk policies and frameworks to individual loan decisions
  • Perform debt investigations and classify debt obligations
  • Synthesize and interpret financial information to identify risk indicators
  • Advise on credit ratings and risk management recommendations
4

Portfolio Monitoring and Follow-up

  • Monitor ongoing credit portfolio performance and client loan development
  • Track payment history and identify potential default risks
  • Maintain and update client debt records and credit history documentation
  • Escalate problematic accounts and recommend remedial actions

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (16)

financial engineeringfinancial engineeringThe finance theory field that addresses the combination of applied mathematics, computer science, and financial theory aimed at calculating and forecasting different financial variables ranging from t...financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...debt classificationdebt classificationThe different classifications of debt such as public and publicly guaranteed debt, private non-guaranteed credits, central bank deposits, etc.insolvency lawinsolvency lawThe legal rules regulating the incapacity to pay debts when they fall due.apply credit risk policyapply credit risk policyImplement company policies and procedures in the credit risk management process. Permanently keep company's credit risk at a manageable level and take measures to avoid credit failure.advise on risk managementadvise on risk managementProvide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.advise on credit ratingadvise on credit ratingProvide advice on the debtor's ability, be it a government institution or a business, to pay back its debt.analyse loansanalyse loansExamine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bil...maintain client debt recordsmaintain client debt recordsPreserve a list with the debt records of clients and update it regularly.synthesise financial informationsynthesise financial informationCollect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.maintain credit history of clientsmaintain credit history of clientsCreate and maintain the credit history of clients with relevant transactions, supporting documents, and details of their financial activities. Keep these documents updated in case of analysis and disc...perform debt investigationperform debt investigationUse research techniques and tracing strategies to identify overdue payment arrangements and address them.analyse the credit history of potential customersanalyse the credit history of potential customersAnalyse the payment capacity and credit history of potential customers or business partners.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
Optional (15) — show
banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.stock marketstock marketThe market in which shares of publicly held companies are issued and traded.investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...tax legislationtax legislationTax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.accountingaccountingThe documentation and processing of data regarding financial activities.public offeringpublic offeringThe elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.manage securitiesmanage securitiesAdminister the securities owned by the company or organisation, namely debt securities, equity securities and derivatives aiming to get the highest benefit from them.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.interview bank loaneesinterview bank loaneesPerform interviews with candidates requesting a bank loan for different purposes. Pose questions in order to test the goodwill and the financial means of candidates for paying back the loan.develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.examine credit ratingsexamine credit ratingsInvestigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.budget for financial needsbudget for financial needsObserve the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.interview techniquesinterview techniquesThe techniques for getting information out of people by asking the right questions in the right way and to make them feel comfortable.

Related Occupations

Occupations that need many of the same essential skills, so the move between them is shortest.

credit adviser7 shared essential skillscredit manager7 shared essential skillsbankruptcy trustee5 shared essential skillsfinancial planner5 shared essential skillsfinancial risk manager5 shared essential skillsloan officer5 shared essential skillscredit risk analyst4 shared essential skillscredit union manager4 shared essential skills

Frequently asked questions

What does a credit analyst do?

Credit analysts investigate credit applications from customers and evaluate if the applications comply with regulations and guidelines of the financial loan-granting institution. On the basis of credit analyses they advise financial institutions whether customers are loan worthy. They perform tasks such as collecting data on the loan applicant, aquire additional information from other departments or institutions and indicating what sort of agreements the financial institution should reach with the credit applicant. Credit analysts also follow up on the development of the credit portfolio of clients.

What skills does a credit analyst need?

A credit analyst needs 16 essential skills, including financial engineering, financial statements, debt classification, insolvency law, apply credit risk policy.

Will AI replace credit analyst jobs?

The AI disruption score for credit analyst is 84/100 (very high risk). Skills most exposed to automation: financial statements, maintain client debt records, maintain credit history of clients. Most resilient: interview techniques, advise on risk management, public offering.

AI Replacement Risk

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Quick Facts

SectorAccountancy
ISCO GroupBusiness and administration associate professionals
Essential Skills16

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