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Commercial lending & risk

Credit Analyst

Deciding whether a business can pay back what it wants to borrow.

Typical pay

$60k-$110k

How you get in

Finance or accounting degree

Outlook

Steady; credit training programs are a reliable entry into banking

Credit analysts evaluate the creditworthiness of borrowers and recommend lending decisions. It is rigorous financial analysis with a clear path into commercial lending and corporate finance.

A day in the life

  1. 8:30aSpread financial statements for a new loan request
  2. 10:00aAnalyze cash flow and debt service coverage
  3. 12:00pLunch
  4. 1:00pIndustry research on the borrower's sector
  5. 2:30pWrite the credit memo and recommendation
  6. 4:00pLoan committee presentation

How to get in

Bank credit training program

Duration

4 years plus 6-18 months of training

Cost

$40,000-$150,000

Credential

Bachelor's in finance or accounting

  1. Complete a finance or accounting degree with strong statement analysis skills
  2. Enter a bank's formal credit training program
  3. Learn spreading, cash flow analysis and credit structure
  4. Move to portfolio manager, then relationship manager or lender

Accounting into credit

Duration

2-4 years

Cost

$0

Credential

Accounting degree; CFA optional

  1. Start in accounting or audit and learn financial statements deeply
  2. Move into a credit analyst role, where that grounding is a real advantage
  3. Learn the lending side — structure, covenants, collateral
  4. Well-worn path into commercial banking

Credit into lending or credit funds

Duration

3-6 years

Cost

$0-$6,000

Credential

CFA or bank credit certifications

  1. Build several years of underwriting experience
  2. Move to relationship management, where you originate rather than analyze
  3. Or move to private credit and direct lending funds
  4. Both routes pay substantially above the analyst level

What people love

  • · Rigorous training in financial analysis
  • · Direct path into commercial lending
  • · Better hours than investment banking
  • · Skills transfer to corporate finance and credit funds

What wears people down

  • · Detail-intensive statement analysis
  • · Pressure from lenders wanting approvals
  • · Accountable when a loan goes bad
  • · Can be repetitive in a stable portfolio

From people doing it

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