Career Spotlight: Credit Analyst - New York Institute of Finance (2024)

Thanks to the role Credit Analysis is playing in the financial crisis of 2008, more people than ever are aware of the importance of credit analysts. Credit analysts can work in many different industries and have many different roles, but the ultimate responsibilities of any credit analyst is to review an entity’s financial history in order to decide whether or not that entity should be given a loan. A role as a credit analyst comes with a large amount of responsibility, but if you have the appropriate skills for the role, it can be a great steppingstone in a financial career path, or a lucrative career in its own right.


A credit analyst evaluates how risky a loan is to a specific entity, usually an individual or a company. In this instance, risk means the likelihood that an entity will default on its loan. A credit analyst’s evalation is often not as simple as yes or no. For example, a credit analyst may approve an individuals for a loan, but only if certain conditions are met. One of the highest stress aspects of a role as a credit analyst, is that the job comes with a high level of responsibility. Credit analysts can be responsible for everything from whether or not a family can receive a mortgage to purchase their dream home to whether a company can receive a loan to take advantage of an expansion opportunity.

Skills and Education

Credit analysts need to be able to evaluate financial data, including balance sheets and income statements. Credit analysts may also evaluate other information such as paying habits, savings, earnings, purchase activity, etc. They then need to be able to communicate their analysis in reports for both the lender and the client. In order to analyze all the relevant financial data, credit analysts will likely need a bachelors, ideally in a related field, such as finance, accounting, or economics. Credit analysts must also have conviction and confidence in their decision-making abilities, since their decisions can have a major impact on clients.

Types of Credit Analyst Roles

Credit analysts can work in a variety of different roles and fields. Even though the underlying aspects of credit analysis remain the same; reviewing and analyzing the creditworthiness of an entity, it can play out in many different ways. The most common employers of credit analysts are banks, insurance companies, and companies that issue credit cards. Other credit analysts jobs include working as a bond analyst for asset managers or private equity firms. Credit analysts may even work for rating agencies to help the agency rate a company or country on its riskiness.

Career Path and Compensation

Many credit analysts begin their career working in accounting, accounts receivable, or loan application and then move up to become credit analysts. A role as a credit analyst can then be a stepping stone to other positions in finance such as a portfolio manager or investment banker. Due to the wide range of different types of credit analysis jobs, the salary can vary greatly. While the average salary for a credit analyst in the United States is $64,546, the bottom 20% make $38,897 and the top 20% of earners make $107,108.

Is a Credit Analyst Role Right for You?

Credit analysis isn’t for everyone. A role in credit analysis requires the ability to analyze financial data, communicate findings, and make decisions with confidence and conviction. If this sounds like you and you’re looking for a position with a high-level of responsibility, then credit analysis may be a good fit.

Career Spotlight: Credit Analyst - New York Institute of Finance (2024)


Is credit analyst a difficult job? ›

The job can be a pathway to a career as an investment banker, portfolio manager, or loan and trust manager. Being a credit analyst can be a stressful job. You often must decide whether a person or a company can make a purchase, and at what interest rate, which is a significant responsibility.

Is credit risk analyst a stressful job? ›

Dealing with multiple projects with short deadlines can be a stressful event for most analysts, and they must find proper ways of managing work stress without stretching their limits or compromising the quality of work.

Can you go from credit analyst to investment banking? ›

Normal Company: It's most common to move around to other areas in corporate finance, such as FP&A, Accounting, or Treasury. But it is also possible to move to a credit rating agency or corporate/investment banking.

Are credit analysts in demand? ›

Outlook. Employment for credit analysts is expected to grow by 5 percent from 2018 to 2028, according to the U.S. Department of Labor, or about as fast as the average for all careers.

Do credit analysts make a lot of money? ›

The majority of Credit Review Analyst salaries across the United States currently range between $90,000 (25th percentile) and $90,000 (75th percentile) annually.

Can I be a credit analyst without a degree? ›

It's not necessary to earn a graduate degree to pursue a job in this field. However, you might choose to return to school later to earn a master's degree if your employer prefers to promote those with this advanced credential. It's common for newly hired credit analysts to undergo a period of on-the-job training.

What are the 5 C's of credit? ›

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

What is the salary of credit risk analyst in JP Morgan? ›

Average JPMorgan Chase & Co. Credit Risk Analyst salary in India is ₹19.2 Lakhs for less than 1 year of experience to 6 years. Credit Risk Analyst salary at JPMorgan Chase & Co. India ranges between ₹8.3 Lakhs to ₹32.0 Lakhs.

How much does a credit risk analyst make in the US? ›

The average credit risk analyst salary in the USA is $104,000 per year or $50 per hour. Entry level positions start at $80,789 per year while most experienced workers make up to $146,479 per year.

Can credit analysts work from home? ›

In this role, you work remotely and communicate with the lender via phone or online. Your responsibilities involve analyzing information and creating reports that examine the risk of lending to a particular client.

Do credit analysts get bonuses? ›

Because the success of the client or company is often directly tied to the performance of a financial analyst, it's very common for this base pay to be supplemented with bonuses or profit-sharing that is contingent on financial growth.

What is a day in the life of a credit analyst? ›

A day in the life of a Credit Analyst involves doing research about people or businesses applying for a loan. This may include talking to employers to verify income and other sources of financial verification.

What is the average age of a credit analyst? ›

The workforce of Credit analysts in 2021 was 34,300 people, with 53.1% woman, and 46.9% men. The average age of male Credit analysts in the workforce is 37.9 and of female Credit analysts is 42.5, and the most common race/ethnicity for Credit analysts is White.

Will credit analysts be replaced? ›

Not to mention, human financial analysts bring creativity and critical thinking AI doesn't tend to possess. So, it is unlikely that AI will fully replace financial analysts, or at least any time in the near future. Instead, they may work together to improve efficiency and accuracy in decision-making processes.

Where do credit analysts make the most money? ›

Highest paying cities for Credit Analysts near United States
  • New York, NY. $111,001 per year. 142 salaries reported.
  • Los Angeles, CA. $88,414 per year. 74 salaries reported.
  • Denver, CO. $78,010 per year. 21 salaries reported.
  • Charlotte, NC. $72,473 per year. 24 salaries reported.
  • Atlanta, GA. $70,332 per year. ...
  • Show more nearby cities.

Do credit analysts work long hours? ›

Working Hours of a Credit Analyst

The work of a credit analyst is office-based, and an analyst can expect to work for an average of eight to 14 hours per day.

What type of person makes a good credit analyst? ›

Credit analysts score highly on conscientiousness, which means that they are methodical, reliable, and generally plan out things in advance. They also tend to be high on the measure of social responsibility, indicating that they desire fair outcomes and have a general concern for others.

Is financial analyst a stressful job? ›

Achieving a healthy work-life balance is particularly vital for Financial Analysts, who often face long hours, tight deadlines, and the stress of high-stakes decision-making.


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