What Is a Credit Risk Analyst?

by Jack Ori

If you need to borrow money for your small business, credit risk analysts will evaluate your application. These analysts usually work for banks. Their job is to evaluate loan applications and determine who is likely to pay their loans back. Credit analysts rarely work directly for small businesses, although some may act as consultants and guide you to success in getting a loan.

Work With Loans

Credit risk analysts help businesses determine whether a loan to a particular person or entity is a good investment. These analysts examine loan applicants' credit, highlight red flags and evaluate the probability that a debtor will default on the loan. Credit analysts don't usually make the final decision on loans; they advise business owners as to their opinion and allow the owner to decide whether to grant the loan.


Credit analysts must have good credit themselves. Most banks and other lending institutions run potential analysts' credit reports before hiring them. In addition, credit analysts often must hold at least a bachelor's degree in financial management or a related field. Credit analysts must have a solid grasp of statistics and other mathematics to adequately perform their jobs.

Office Visits

Credit analysts usually do their work from their own offices. However, if a small business applies for a loan, credit analysts sometimes visit the business to see whether its operations make it more creditworthy. Visiting businesses in person allows credit analysts to see their daily operations and get a better idea of how likely the business is to succeed and eventually pay back the loan.

Career Opportunities

Credit risk analysts usually work for banks or other financial institutions. Analysts who are particularly good at their jobs may get positions in higher-paying financial institutions. In addition, some analysts work independently as consultants. These analysts start their own small businesses and consult with banks or other financial institutions regarding loans. Consultants may also use their expertise to advise businesses as to how to maximize their chances of getting loans.

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