Collections representative vs credit representative

The differences between collections representatives and credit representatives can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-12 months to become a collections representative, becoming a credit representative takes usually requires 1-2 years. Additionally, a credit representative has an average salary of $39,268, which is higher than the $34,015 average annual salary of a collections representative.

The top three skills for a collections representative include payment arrangements, customer service and delinquent accounts. The most important skills for a credit representative are customer service, customer accounts, and patients.

Collections representative vs credit representative overview

	Collections Representative	Credit Representative
Yearly salary	$34,015	$39,268
Hourly rate	$16.35	$18.88
Growth rate	-8%	-8%
Number of jobs	85,275	73,520
Job satisfaction	-	-
Most common degree	High School Diploma, 33%	Bachelor's Degree, 47%
Average age	46	39
Years of experience	12	2

What does a collections representative do?

A Collections Representative's role is to collect payment for outstanding or overdue bills through phone calls, email, mail, or sometimes personal appointments. A Collections Representative is required to have a great deal of research and communication skills in order to reach out to people and explain how to settle their debts or even negotiate a payment term or plan. Collections Representatives must also make sure that these terms are honored and met, and create reports for the creditor regarding the delinquent accounts.

What does a credit representative do?

Credit representatives are professionals who analyze the credit data and the financial statements of firms or individuals for the determination of the risk in lending money or extending credit. The representatives are tasked to prepare reports with credit information used in decision making. They manage credit files and process credit reports from different credit reporting sources. They also mentor and coach credit representatives newly hired in corporate procedures and policies. Also, they expand collection procedures and policies to lessen DSO parameter risk.

Collections representative vs credit representative salary

Collections representatives and credit representatives have different pay scales, as shown below.

	Collections Representative	Credit Representative
Average salary	$34,015	$39,268
Salary range	Between $26,000 And $42,000	Between $28,000 And $54,000
Highest paying City	San Ramon, CA	White Plains, NY
Highest paying state	California	New York
Best paying company	University of California, Berkeley	Systemax
Best paying industry	Finance	Construction

Differences between collections representative and credit representative education

There are a few differences between a collections representative and a credit representative in terms of educational background:

	Collections Representative	Credit Representative
Most common degree	High School Diploma, 33%	Bachelor's Degree, 47%
Most common major	Business	Business
Most common college	-	University of Pennsylvania

Collections representative vs credit representative demographics

Here are the differences between collections representatives' and credit representatives' demographics:

	Collections Representative	Credit Representative
Average age	46	39
Gender ratio	Male, 30.6% Female, 69.4%	Male, 29.5% Female, 70.5%
Race ratio	Black or African American, 12.2% Unknown, 3.9% Hispanic or Latino, 18.9% Asian, 3.4% White, 61.1% American Indian and Alaska Native, 0.5%	Black or African American, 8.3% Unknown, 2.7% Hispanic or Latino, 10.0% Asian, 7.8% White, 71.0% American Indian and Alaska Native, 0.3%
LGBT Percentage	8%	11%

Differences between collections representative and credit representative duties and responsibilities

Collections representative example responsibilities.

Protect A/R assets by managing a portfolio of accounts to maximize gainful sales and reduce debt losses.
Maintain effective communication and utilize negotiation skills with internal and external customers to effect collections while maintaining customer good will.
Submit all reconsideration and appeals if need.
Conduct periodic data cleaning of queues balances deny with deny appeals.
Resolve valid or authorize NSF charges due to decline credit cards or ACH transactions.
Collect and count inventories, reconcile purchases and scan UPC's and inputting price information.

Credit representative example responsibilities.

Manage portfolio utilizing AS400 and GetPaid systems.
Manage all credit files and process credit reports from various credit reporting sources including TRW and Dunn & Bradstreet.
Manage customer relations with internal personnel, group administrators, brokers and members as related to Medicare insurance.
Apply customer credit card and ACH payments.
Perform the posting of checks refunds and credit cards into the AS400 database.
Collect invoices through wire payment, ACH payments, and overnight mail options.

Collections representative vs credit representative skills

Common collections representative skills

Payment Arrangements, 14%
Customer Service, 13%
Delinquent Accounts, 9%
Past Due Accounts, 6%
Customer Accounts, 4%
Debt Repayment, 4%

Common credit representative skills

Customer Service, 22%
Customer Accounts, 6%
Patients, 5%
Credit Card Payments, 4%
Credit Balances, 4%
Payment Arrangements, 4%

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Office and Administrative Industry
Collections Representative
Collections Representative vs Credit Representative

Updated January 8, 2025

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