Credit Jobs

By: EconomyWatch   Date: 1 October 2009

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Credit jobs entail a lot of hard work, a variety of skills and in-depth knowledge of finance and market trends. These jobs are highly lucrative and involve tremendous stress. Financial institutions that offer loans to individuals and businesses cannot function without credit risk analysis and credit risk management. Such institutions therefore roll out a lot of credit jobs.

Credit Jobs: Types

The most common types of credit jobs one can expect to find with lending institutions include:

Credit Manager: A credit manager is usually a part of the credit department, collections or accounts receivable department, depending upon the company. The core responsibilities of a credit manager include deciding the credit limit, payment terms and risk levels. In the collections department, a credit manager maintains cash flow, monitors the accounts receivable portfolio and controls bad debt exposure. A credit manager’s job also involves managing the company’s credit policy and taking legal action against frauds. The two main categories in this profile are consumer credit managers and commercial credit managers. A credit manager may earn upwards of $70,000 per year.

Credit Analyst: The designation of a credit analyst involves evaluating the customer’s ability to pay back the loan. A credit analyst gathers the financial information or history of the customers. The task of assessing the risk involved in offering credit is also performed by a credit analyst. S/he determines the credit rating data to make credit recommendations. A bachelor’s degree in accounting or finance is required for an entry level position, whereas for better pay and a high profile company, an MBA degree is a must. An average credit analyst earns around $52,000 per year.

Credit Risk Analyst: This professional is responsible for evaluating the prospective loss or profit involved in lending. Risk analysis is sometimes considered as advanced credit analysis. A credit risk analyst identifies and controls risk that the firm may have to bear. S/he provides statistical information and studies market trends. The functions of a credit analyst include:

·        Analyzing legal compliance of a company’s credit risk policies

·        Preparing credit risk models through financial software

·        Carrying out portfolio analysis and stress testing

Credit Counselor: This professional educates consumers on how to negotiate with creditors to avoid mounting debts. A credit counselor helps consumers by preparing a debt management plan that facilitate debt repayment. Credit counselors should have thorough understanding of the terms mentioned by the creditors.


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