Jessica Buhlman

Business 1010
E-Portfolio Term Project Paper

Credit Analysis
A Credit Analysts responsibilities would include analyzing credit data and
financial information of persons or companies that are applying for credit or loans to
determine the risk that the bank, or other lending or credit-granting institution will not
recoup funds loaned. The level of risk is then used to determine if a loan or line of credit
will be granted, and if so, the terms of the loan, including interest rate. Credit Analysts
will prepare reports based upon their findings to help make decisions on lending and
credit-worthiness. (Credit Analyst Jobs)
Depending on the employer of the Credit Analyst the job description will vary,
but most typical job responsibilities would include: determining the risk of lending
money by evaluating credit data and financial statements, preparing reports with the
degree of risk a client is when lending them money, creating payment plans according to
client records, exchanging credit information with credit associations and references of
the client, submitting loan applications to loan committees for approval, helping all of the
following departments which would include supply chain, sales and marketing
departments to control credit exposure, timely payments and reduce customer disputes,
and, finally resolving customer complaints by reviewing their financial and credit
transactions (Credit Analyst Jobs).

A career as a Credit Analyst is growing faster than other average occupations as

this is due to high demand in lending products. Your responsibilities as stated above are
to assist lenders in making important business decisions, giving both the customer and
your firm the financial information that they need to make that determination. In order to
succeed in this field one should be detail-oriented and good with numbers, and, you
should also be thinking about the future scenarios to assess risk for your firm (How to
Become a Credit Analyst-careerqa).
If you decide to become a Credit Analyst then you should follow these steps:
1. Complete requirements for applying to an accredited college or university;
2. Enroll in a Bachelors Degree Program at your College (in order to have the
qualifications to be a Credit Analyst you must have a Bachelors Degree in
Finance, Business, Administration and Accounting or Economics.);
3. Take classes in the following: Business, Management, Accounting, Statistics and
Mathematics;
4. Communicate with your college advisor and professors to keep informed as you
earn your degree;
5. Understand the skills that you will need in order to succeed as a Credit Analyst;
6. Earn your Bachelors Degree and work as a Credit Analyst.
As you work towards your Bachelors Degree, it is recommended that you gain workrelated experience by taking internship opportunities as well as applying for a job in
person, online and in the mail (How to Become a Credit Analyst-wikihow).
Education requirements for Credit Analysts include earning a Bachelors Degree
in Finance, Business, Administration and Accounting or Economics. Obtaining a

Bachelors Degree in Finance or Accounting will expose you to the basic subject of
Accounting and Finance, Statistics, Ratio Analysis, Calculus, and Economics which will
help you in making risk assessments as a Credit Analyst. The subjects like the industry
and rational analysis will help you assess the environment for your company. While it is
the norm to be required to have a Bachelors Degree, some companies provide on the job
training for their employees. A company that does on the job training will have
requirements such as work experience in an accounting or finance related job or
graduating with a business related degree. Depending on the level of the job, a company
might require a Credit Analyst to have a Chartered Financial Analyst (CFA)
designation. (Morah, Chizoba) The Chartered Financial Analyst (CFA) designation is
regarded by most to be the key certification for investment professionals, especially in the
areas of research and portfolio management. It is, however, one of many designations
used today. This can cause some confusion as investors and professionals alike puzzle
out what each designation means and which is best. (Wayman, Rick). Other helpful
skills would include the following; diligence, quantitative analysis skills, written and oral
communication skills, knowledge of industries, multi-tasking and prioritization skills, and
experience with financial software.
Working as a Credit Analyst you have many different companies you can work
for, such as banks or insurance companies. There is also high demand for investment,
working as an asset manager or private equity firm such as a bond analyst or rating
agencies. The annual salary range for a Credit Analyst is between $39,000 to $119,000
and dependent on the level of experience and the type of industry you work for and your
geographic location. The top 10% of Credit Analysts earn $119,100, the senior

employees are the top 25% earn $87,520, the experienced employee is the middle 50%
who earn $64,030, a junior employee is the bottom 25% can earn $47,990, and the entry
or starting employee is the bottom 10% of a Credit Analyst pay who earns $38,960.
(Zucchi, CFA, Kristina)
As a Credit Analyst you will have a good potential advancement in the future,
such as working in management roles in the credit department of a business. When
starting as a Credit Analyst and working in the financial sector for a business or banks,
the Credit Analyst is provided with the ability to move into other jobs such as the Chief
Financial Officer (CFO) or Chief Executive Officer (CEO) of a corporation. But in order
to make such changes in your career path you will need to accumulate a great deal of
experience. (Credit Analyst Job Profile)
I personally interviewed a friend of mine, Ms. Coleman, who works at Ally Bank
as a Community Reinvestment Analyst. Ms. Colemans work as a Community
Reinvestment Analyst is defined by her skills: education, experience, and her knowledge
of the Banking Compliance and Community Reinvestment Act (CRA), which is a fairly
specialized field and high in demand. Entry level employment could be any entry level
position within the banking industry by Congress in 1977, the CRA encourages banks to

help meet the credit needs of their communities for housing and other purposes,
particularly in neighborhoods with low or moderate incomes, while maintaining safe and
sound operations (Evans, D., & William Evans, JD, J). Ms. Coleman attended
Randolph-Macon Womans College in Lynchburg, VA where she earned her Masters
Degree in Business Administration. I asked Ms. Coleman what classes she would advise
a college student to take who was working towards her (Ms. Colemans) field. Ms.
Coleman recommended anything related to federal banking laws and regulations is

helpful, as well as compliance and regulatory business classes, etc. (Coleman, B). We
also talked about the skills that would be needed in this career path that she could suggest
before I make a final decision to get my degree in this area. Ms. Coleman said that those
individuals who were trained in the area of the Banking Compliance and Community
Reinvestment Act (CRA) are in high demand. Any banking industry entry level position
is a good start to the career path.
I asked Ms. Coleman how she got her job, and she explained to me that she had
been in banking for almost 7 years but didnt start as a CRA until 2011 when her work
needed her due to high employee turnover. She explained that the job entailed her having
responsibility for community development loans and investments within the bank as well
as grants. She explained that she must use due diligence with both the companies and the
investors, and she also said that she gets to work with attorneys to prepare closing
documents and managing the lifecycle of a loan or investments for the bank.
I asked Ms. Coleman what a typical workday was like and she said that she
normally works 45-50 hours a week and her typical day would include Lots of email
too much email! I work 7:30-4:30p.m in the bank but am usually on my Blackberry much
more. Lots of paperwork as well; for a paperless world we sure do go through a LOT of
paper. There are a lot of details involved with the closing of a loan or investment,
especially when you are dealing with government tax credits and other innovative
banking. The FDIC looks at all of our backup and scrutinizes all CRA loans and
investments during their exams so it is imperative that we are organized and prepared to
answer their questions. We are required to spend a certain amount of money on

community related loans and investments, as well as grants, and must ensure the funds
are properly used (i.e., financial literacy). (Coleman, B).
Ms. Coleman and I also talked about what skills were required in her position, and
she told me that she had to be proficient in all Microsoft office products but the most
important thing of all is her organizational skills. I also asked if any lifestyle changes,
such as traveling or late-night business was involved she answered no, which is good for
her due to having two young children. She did tell me that she may have to travel once or
twice a year to a conference, but that was about all the travel that was required of her. She
also explained that most of her meetings are local as the bank is a Utah chartered bank
and focused on giving back to the community in the Salt Lake area.
I asked Ms. Coleman what part of her job was most challenging. She told me that
no two CRA loans or investments are the same, so they can be tricky and usually involve
something different so it doesnt fit into a single mold. Ms. Coleman also told me the
most enjoyable part of her job was donating time and/or money to a non-profit
organization and see the positive effect it has on the people involved there. We also
talked about the negatives of her job. The biggest negative to her was not being able to
donate time and/or money to every non-profit that needs the help, and having to choose
between them. She also said that this was the hardest part of the job, and it was hard not
to take it personally.
I asked Ms. Coleman what the corporate culture was like. She told me that they
were a professional group, but also have a lot of fun with their work. She explained that
the environment is very relaxed about working from home and having to working

specific hours. She likes that her job is flexible. I also asked her if she would recommend
her job to anyone, and she said Definitely!
I wanted to know what Ms. Coleman thought was the most important thing to
know about her career. She said the most important thing was to keep a smile on your
face and be willing to do just about anything to help your team. We talked about the
current growth of the CRA field and I asked if there was room for someone like myself.
She told me that the CRA field and compliance are very specialized, so once you get a
job you can go pretty far. She explained that you dont have to specialize in loans or
investments and or grants, but that there are many different areas to focus on. She
explained that in her profession, it is a small world of CRAs and compliance
professionals in the Salt Lake area, but everyone seems to know one and other.
I asked Ms. Coleman why most people would leave the field or the company. She
explained to me that it is usually a swap of people most of the time, but that most leave to
increase their salaries. We talked about the opportunities for self-employment in her field
and she said that you could possibly work as a consultant but most banks employees are
full-time on site. She told me that a reasonable salary range to expect in this field would
probably be around $60,000. (Coleman, B).
Pros and Cons of becoming a Credit Analyst. The cons of becoming a Credit
Analyst would include:
1. Getting your required Bachelors Degree;
2. Dealing with angry customers and sending accounts to collection agencies;
3. Working more than 40 hours in a week;
4. Being accurate in your assessments to ensure that the lending is not a high risk;

5. Sitting and working on a computer which could lead to back strain, wrist injuries
and eye strain.
The pros of becoming a Credit Analyst would include:
1. Job growth (this profession is projected to increase up to 10% between the
years of 2012 and 2022);
2. Higher pay than the median salary jobs for people with Bachelors Degrees;
3. Activities may vary day to day;
4. Multiple industries to work at. (Pros and Cons of Becoming a Credit Analyst).
In conclusion, I think that I would be a good fit for this field. I am currently
earning my Business AS Degree, an Accounting AAS, and a Finance and Credit AAS
Degrees. Once I have graduated from Salt Lake Community College I plan to transfer to
the University of Utah. I am still undecided on what I want to get my degree in there, but
I know that I am heading towards the School of Business at the University. I want to get
my degree in either Accounting or Finance and Credit. I chose this career path because I
worked at Discover Card for a year after I graduated from high school and found that I
really like finances and also enjoy advising people about making good financial choices.
With the information that I have learned from this paper, I do think that becoming
a Credit Analyst is something that could be a good fit for me. I know more about what a
Credit Analyst does I also know what level of education that I need to reach in order to
become one. As I said above, I like helping people with their finances as well and helping
them make good financial choices. I am a hard worker, detail-oriented and good with
numbers. I enjoy math and have only taken three accounting classes, but have enjoyed
them very much. I can see myself analyzing data for financial decisions for customers

and/or companies. I have also always wanted to work at a bank, and a Credit Analyst
works in many different industries, so becoming a Credit Analyst could be a very good fit
for me.

Resources
Credit Analyst Jobs. (n.d.). Retrieved April 25, 2015, from
http://www.financialplannerworld.com/credit-analyst/
Credit Analyst Job Profile. (n.d.). Retrieved April 26, 2015, from
http://www.cvtips.com/career-choice/credit-analyst-job-profile.html
Coleman, B. (2013, March 19). Bio of someone in the profession [E-mail interview].
Evans, D., & William Evans, JD, J. (2007, January 1). CRA. Retrieved April 26, 2015,
from http://financial-dictionary.thefreedictionary.com/CRA
How to Become a Credit Analyst-careerqa. (2015, January 1). Retrieved April 26, 2015,
from http://www.careerqa.com/careers/credit-analyst/
How to become a Credit Analyst-wikihow. (n.d.). Retrieved April 26, 2015, from
http://www.wikihow.com/Become-a-Credit-Analysthttp://www.wikihow.com/Become-aCredit-Analyst
Morah, C. (2008, October 21). Analyzing a Career in Credit Analysis. Retrieved April
24, 2015, from <http://www.investopedia.com/articles/financial-careers/09/career-creditanalysis-analyst.asp>.
Pros and Cons of Becoming a Credit Analyst. (n.d.). Retrieved April 26, 2015, from
http://learningpath.org/articles/Credit_Analyst_Career_Info.html
Wayman, Rick. "An Introduction to the CFA Designation." Investopedia. 7 Dec. 2003.
Web. 26 Apr. 2015. <http://www.investopedia.com/articles/analyst/060302.asp>.
Zucchi, CFA, Kristina. "Credit Risk Analyst Job Description." Investopedia. 14 Jan.
2015. Web. 26 Apr. 2015. <http://www.investopedia.com/articles/personalfinance/011415/credit-risk-analyst-job-description.asp>.