Last Updated: July 2nd, 2022 by
Career Shortcuts
There are various paths you can take to learn how to become a credit analyst. While many people may enter the profession with a degree in finance or accounting, it is not required.
However, earning your certified credit analyst title can help you enhance your skills and professional credibility.
Read on to learn more about how to become a credit analyst and the types of education, work experience, and certification options available to you!
Visit our Career Guide for a list of all our job insights for an in depth look at the new career path you are considering.
What is a Certified Credit Analyst?
A certified credit analyst is a professional who has been specifically trained to analyze and assess an individual or organization’s creditworthiness.
To become certified, credit analysts must have a certain amount of work experience and pass a rigorous exam.
The certification process is designed to ensure that credit analysts have the knowledge and skills necessary to perform their job effectively.
As its name suggests, a vital component of a credit analyst’s job is to analyze an individual or organization’s credit history.
This includes looking at financial statements, payment history, and other relevant information.
Based on this analysis, the credit analyst will then decide whether or not the individual or organization is a reasonable risk for lending money.
This information is essential for both lenders and borrowers, as it can help make sure that loans are made responsibly.
Certified credit analysts play an essential role in finance and their skills are in high demand.
In today’s economy, where borrowing and lending decisions are made with increasing frequency, the need for qualified professionals who can accurately assess risk is more significant than ever before.
If you are interested in a career in finance, becoming a certified credit analyst is a great way to start.
Read our related article on How to Become a Data Analyst where you’ll spend your time analyzing data for companies and organize it to help the company make decisions.
What Does a Certified Credit Analyst Do?
A certified credit analyst is a professional who provides analysis and recommendations regarding the creditworthiness of individuals or businesses.
Credit analysts typically work for banks, financial institutions, or credit rating agencies.
The job of a credit analyst is to assess the risk of lending money to a particular borrower.
This involves reviewing financial statements, evaluating credit history, and analyzing economic trends.
Credit analysts will provide a report that recommends granting or denying a loan based on their findings.
In some cases, they may also recommend conditions that should be attached to the loan to minimize risk for lenders.
Check out this video of Credit Analysts explaining what to expect from this position:
Career Guide
How to Become a Certified Credit Analyst
Follow these steps to become a certified credit analyst:
Step 1: Earn an Associate or Bachelor’s Degree
Becoming a certified credit analyst requires at least an associate degree, though most employers prefer candidates with a bachelor’s degree.
Associate degree programs in accounting or financial analysis typically last two years and include courses in the principles of accounting, microeconomics, and statistics.
Bachelor’s degree programs typically last four years and include coursework in business law, macroeconomics, and finance.
Many credit analysts also earn a professional certification from the Credit Research Foundation or the American Bankers Association.
Certification typically requires completing an exam and meeting experience requirements.
Candidates with a master’s degree in business administration or a related field may have an advantage in the job market.
Master’s programs generally include managerial accounting, financial management, and investment analysis coursework. Some institutions offer accelerated MBA programs that can be completed in only one year.
Step 2: Gain Work Experience in an Entry-Level Position
Becoming a certified credit analyst is a great way to gain work experience in an entry-level position. Credit analysts scrutinize an organization’s financial statements and other records to assess its creditworthiness.
This information is used by lenders, investors, and insurers to decide whether to extend credit or provide capital.
To become a certified credit analyst, you must have at least two years of experience working in credit analysis.
You must also complete a written examination administered by the American Institute of Certified Public Accountants (AICPA).
Becoming a certified credit analyst can give you the skills and knowledge you need to pursue a career in finance or accounting.
It can also allow you to work with various clients, including small businesses, large corporations, and government agencies.
Step 3: Compare Certification Options to Your Career Goals
There are many ways to achieve your career goals as a credit analyst, and the path you take will depend on your specific goals and interests.
However, becoming a certified credit analyst can give you a leg up in the job market and help you attain your goals.
Certification indicates that you have the knowledge and skills necessary to perform your job effectively, and it can give you an advantage when competing for jobs.
Step 4: Choose a Certification Fit for Your Qualifications
There are many different certification programs available, so it is essential to choose one that matches your qualifications.
For example, if you have experience working with corporate clients, you may want to consider becoming a Certified Credit Analyst through the Institute of Business Finance.
This program will give you the skills and knowledge to work with corporate clients and help them make sound financial decisions.
Alternatively, if you have experience working with small businesses, you may want to become a certified credit analyst through the Small Business Administration.
This program will give you the skills and knowledge to work with small businesses and help them grow and prosper.
Whatever your qualifications, a certification program can help you achieve your goals.
Step 5: Complete a Certification Program
There are many different certification programs available, each with its requirements and benefits.
However, becoming certified generally includes completing a certain number of credit hours, passing an exam, and meeting other needs set by the program.
The most important thing to remember is that becoming certified shows potential employers that you have the knowledge and skills necessary to perform the job.
With the proper certification, you can open doors to new opportunities and advance your career.
Step 6: Add Your New Credentials to Your Resume
The certification process requires you to pass an exam, and it also requires you to complete a certain amount of coursework. However, the benefits of becoming certified are well worth the effort.
With your new credentials, you’ll be able add your new credentials to your resume to show potential employers that you have the skills and knowledge necessary to succeed in the role.
In addition, becoming certified will give you access to various resources and networking opportunities.
If you’re serious about furthering your career in the financial world, becoming a certified credit analyst is a great way to get started.
FAQs
How Long Does it Take to Become a Certified Credit Analyst?
The length of time it takes to complete a certification program varies depending on your chosen program.
However, most programs require you to complete a certain number of credit hours and pass an exam.
Once you’ve met these requirements, you’ll be able to add your new credentials to your resume.
What is the Average Salary of a Certified Credit Analyst?
As of 2019, the average annual salary of a certified credit analyst was $55,000.
However, this annual salary will differ depending on the industry, company, and area/state in which you work.
It will also vary depending on one’s higher education degrees and industry certifications.
Conclusion
Becoming a certified credit analyst is a great way to enhance your skills and professional credibility in the financial world.
There are many different certification programs available, so be sure to research the options and choose the one that best matches your qualifications.
With the proper education and certification, you can open doors to new opportunities in finance and advance your career as a certified credit analyst.
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