Credit analyst

Definition

A credit analyst is a financial professional who evaluates the creditworthiness of individuals, companies, or securities. They provide recommendations on whether to grant loans and assess the risk associated with lending.

5 Must Know Facts For Your Next Test

1. Credit analysts use various financial ratios and metrics to assess credit risk.
2. They often prepare detailed reports that include their findings and recommendations.
3. Credit analysts work for banks, investment firms, insurance companies, and other financial institutions.
4. They must have strong analytical skills and a good understanding of financial statements.
5. Their assessments help determine interest rates and loan terms.

Review Questions

• What is the primary role of a credit analyst?
• Which skills are essential for a credit analyst?
• Where do credit analysts typically work?

Related terms

Financial Ratios:

Quantitative measures used by analysts to evaluate the financial health of an entity.

Loan Officer: A professional who evaluates and approves or denies loan applications based on an applicant's credit history.

Risk Assessment:

The process of identifying, analyzing, and evaluating the likelihood and impact of potential risks.