What Is a Credit Risk Analyst and How to Become One

By ZipRecruiter Marketplace Research Team

A credit risk analyst evaluates the creditworthiness of individuals or businesses seeking loans or credit cards. As a credit risk analyst, you must be systematic and thorough in examining each applicant’s financial information to provide a recommendation of whether or not your employer should grant credit to the applicant. Essentially, you are evaluating the risk to reward ratio of each loan applicant. Your job duties include the analysis of credit scores and credit reports, payment history, bank statements, and other financial statements. Depending on the scope of your job, you may collect this information directly from clients and inform them if the institution can approve or deny their credit or loan application.

To start your career as a credit risk analyst, you need an associate’s degree in accounting, finance, or business to qualify for an entry-level position. The qualifications for senior-level positions are at least a bachelor’s degree in a relevant field and experience working in banks or financial firms. You need strong quantitative skills to be an effective credit risk analyst. You can demonstrate your skills with a professional certification, like the Credit Risk Certification (CRC) from the Risk Management Association, but this not among the required qualifications for most employers.