Becoming a credit analyst is a process that takes time and effort, but it’s worth it.
The first step is to know what you’re getting into and make sure you want to do it. If you’re looking for something stable and reliable, this isn’t the right career path for you. Credit analysts work in industries with high rates of turnover, where they are often laid off when the economy slows down or an industry begins to suffer. Credit analysts also have very little control over their own job security: they can be fired at any time, regardless of how well they’ve done in their job or how much they’ve improved company profits.
If you decide that this is the career path for you, then the next step is to find a good school. If possible, look for institutions that offer training programs specifically designed for people who want to become credit analysts—they’ll give you more practical experience than most other schools will. You can also try taking some college classes before deciding whether or not this is what you want to do; if so, take classes in economics, business management, accounting and finance (or information systems), statistics/mathematics and computer science/information technology if possible because these subjects will help prepare you for credit analysis jobs down the road.
How To Become Credit Analyst
There are a variety of certification options for credit analysts at different stages of their careers. Certified credit analysts have the opportunity to enhance their skills and professional credibility through by achieving certifications. By learning more about how to be a certified credit analyst and the types of education, work experience and certification options you can pursue, you can develop a plan to earn your certified credit analyst title.
In this article, we define what a credit analyst is, review key job details and provide a list of steps on how to become a credit analyst, including certification options and how to achieve credit analyst certification.
Related: What Are the Top Certifications for Wealth Management?
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What is a certified credit analyst?
A certified credit analyst is a credit analyst professional who holds one or more certifications in credit analysis or related specialties which qualifies them to be “certified,” credit analysts. Certified credit analysts assist clients or employers with reviewing applications for loans, investments and other financial assistance programs and going over applicants’ financial data to determine eligibility.
Related: Credit Analyst Skills
What does a certified credit analyst do?
Certified credit analysts work for loan companies, financial institutions, investment banks and corporations to ensure financial eligibility of loan applicants or potential investors. Here are some examples of job responsibilities that certified credit analysts complete:
- Reviewing an applicant’s bank statements, credit histories, credit scores and other financial documents
- Investigating financial discrepancies to determine an applicant’s financial credibility
- Writing risk reports after evaluating applicants’ financial records and credit history to convey whether they think the applicant should receive loans
- Working with approved applicants to determine the best payment plans or financial programs they can offer the applicant, based on the applicant’s income
- Using software programs to translate an applicant’s credit data into visual graphs or charts to include in the final reports
- Comparing credit applicants’ financial data to their employer’s eligibility guidelines and consulting with other credit professionals to determine an applicant’s eligibility and potential exceptions
How to become a certified credit analyst
Review these steps to determine how to become a certified credit analyst and get certified:
1. Earn an associate degree or bachelor’s degree
Although some employers may prefer candidates to have a bachelor’s degree, prospective certified credit analysts may also be able to earn their certifications by attending a two-year associate degree program in accounting or finance, followed by extensive work experience. For those who want to attend a four-year bachelor’s degree program, they can benefit from majoring in accounting, finance or finance management.
2. Gain work experience in an entry-level position
After earning a college degree, prospective certified credit analysts have the required education to apply for and complete a few years of work experience in junior or mid-level credit analyst roles. During this time, professionals gain onsite job training and learn how to complete the work of credit analysts. They can also use this time to enhance their assessment and accounting skills to better prepare them for career advancement opportunities.
3. Compare certification options to your career goals
Because there are a range of professional certifications that accredited institutions offer to credit analysts, it’s important that you research your options and determine which certification reflects your career goals as a certified credit analyst before you apply.
4. Select a certification that matches your qualifications
When evaluating which credit analyst certifications align with your career goals, you also need to determine the prerequisites for each and whether your current education and professional experiences make you eligible to apply.
5. Complete a certification program
Certification programs for credit analysts can vary in length and take the form of in-person, online or hybrid learning options. This typically includes a few months of taking courses and studying materials about credit analysis and reporting, followed by taking and passing a certification exam to become a certified credit analyst.
6. Add your new credentials to your resume
Once you become a certified credit analyst, you can display your new professional title and the certification you received under the education section of your resume or your certification section, should you have other certifications. You can also highlight your certification on your profile for professional networking sites, so you can market yourself to potential employers.
Related: 36 Credit Analyst Interview Questions (With Sample Answers)
Types of credit analyst certifications
Here are some examples of the types of credit analyst certifications and specialized certifications you can achieve and the requirements for each:
Commercial Banking & Credit Analyst (CBCA)
Prerequisites:
Those with an interest in a career in credit analysis or those currently enrolled or graduated from a college degree program. Certification applicants don’t need any work experience in credit analysis to participate.
Certification course details:
The Corporate Finance Institute (CFI) offers the Commercial Banking & Credit Analyst (CBCA) certification. This is an online certification that consists of 29 courses relating to the fundamentals of commercial banking and credit analysis and more in-depth topics like account monitoring, financial modeling or loan security. It typically takes between four to six months to finish the certification program, but students can complete the program within a time frame that works best for them. Students receive their CBCA certifications after they’ve completed the necessary assignments for each course.
How to apply:
Go to the CBCA certification’s designated page on the CFI website and click the “Enroll Now,” button. You will need to create an account with the CFI to continue through the enrollment process. You may also need to pay an enrollment fee.
Certified Credit and Risk Analyst (CCRA)
Prerequisites:
Completion of a college degree program in an area like finance or accounting
Certification course details:
The National Association of Credit Management (NACM) offers the Certified Credit and Risk Analyst (CCRA) certification to help finance professionals enhance their ability to assess financial data and make important decisions about eligibility. It has three courses, including financial accounting, financial statement analysis and risk assessment. To earn the CCRA certification, students have to complete each course along with an in-person course and an in-person exam.
How to apply:
To apply for the CCRA certification, you need to go to the NACM website and go to the CCRA webpage. Then you need to complete a registration form and submit it to the NACM’s Education Department along with your college transcripts.
Certified Credit Professional (CCP)
Prerequisites:
Completion of a bachelor’s degree program, at least two years of professional experience in finance or accounting and 25 hours of experience of retail banking training
Certification course details:
Offered by the American Association for Investment and Financial Management (AAIFM), this certification helps credit analyst professionals with a few years of professional experience to expand their knowledge of retail banking, credit analysis and consumer lending. Candidates achieve certification by taking and passing a three-hour exam.
How to apply:
To apply for the CCP exam and certification, you need to go to the AAIFM’s website, click the “Registration for the Online Certification Exam” button and enter your personal details before submitting your form.
Credit Risk Certification (CRC)
Prerequisites:
Completion of a college degree program followed by three to five years of professional experience in an area like banking or credit analysis
Certification course details:
The Risk Management Association (RMA) provides this certification to credit analyst professionals. This certification program reviews topics relating to commercial borrowing, risk analysis and underwriting. Participants can prepare to take the CRC examination by reviewing the RMA’s study materials and taking optional courses.
How to apply:
To apply, you can go to the RMA’s website and click the link available on the CRC certification page. This should take you to the CRC’s official page, where you can enroll by clicking the “apply” button.
Certified Credit Executive
Prerequisites: There are three pathways to qualify for the CCE certification:
- Path A: Earn and hold the CBA and CBF certifications in combination with 125 career roadmap points
- Path B: A bachelor’s degree, followed by 10 years of work experience and 125 career roadmap points
- Path C: (For those 57-years-old or older) 15 years of work experience and 125 career roadmap points
Certification course details:
The National Association of Credit Management (NACM) also offers the Certified Credit Executive (CCE) certification in addition to other certification options. This certification programs provides expert credit professionals with certification to achieve or continue excelling in executive-level credit analysis roles. The CCE certification program includes courses and study materials, followed by the completion and passing of an in-person exam.
How to apply:
Go to the NACM’s website and find the CCE certification under certification programs. Following the directions advised by the NACM, complete the registration form and submit it with your resume, college transcripts and an enrollment fee to the NACM’s Education Department.
Related: Comparing Certifications: Financial Risk Management vs. Chartered Financial Analyst
Salary expectations for certified credit analysts
The national average salary expectations for credit analysts in the U.S. is $58,332 per year. This salary figure may differ depending on a credit analyst’s level of professional experience, place of employment and geographic location of employment.
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Job outlook for certified credit analysts
According to the Bureau of Labor Statistics (BLS), the job outlook for financial analyst occupations can expect to see a 5% increase between 2019 and 2029. This growth percentage is higher than average growth rates for similar occupations.
