What is a Credit Assistant?

We have all heard of the banking crisis which led to the stock market crash in 2008. The Federal National Mortgage Association, purchasing risky mortgages from banks, and banks in turn repackaging them into mortgage-backed securities (MBS) for investors to purchase. The relaxing of the lending standards offered loans to those who could not afford them. Eventually, when house prices decreased, highly leveraged banks and investors got affected, due to borrowers defaulting on their loans and, thus, bursting the bubble.

Determining the creditworthiness of a borrower is the duty of a credit analyst. Basically, they are in charge of determining your default rate. Daily, a credit analyst will be tasked with assessing financial records, such as earnings and savings, perform account reconciliations, develop data programming, and manage underwriting guidelines. Besides that, they also create portfolio management strategies, write reports, and analyze market factor correlations.

Employers require credit analysts to have a bachelor's degree that is business-related, such as finance, accounting, or economics. A degree in mathematics would also be accepted, if you can also demonstrate fundamental business knowledge. A credit analyst earns, on average, $28 per hour and this position is suitable for those who have strong analytical skills.

A credit and collection analyst assesses a person's or company's risk in terms of extending credit and collecting repayments. A credit and collection analyst has the role of reviewing a customer's financial history, financial statement, and any other information related to collecting a line of credit. They help coordinate collections calls and also work with customers to help repayments happen, create payment plans for outstanding debts, and assist in handling account discrepancies. The analysts also reach out to financial institutions and clients to collect documents necessary for the resolution process. Plus, he/she updates the clients' information on the database, analyzes the terms of service, and responds to their inquiries.

A credit and collection analyst must possess varieties of skills because of the work they do. These include the ability to work with both the borrower and the lender. They must also possess strong math skills and excellent people skills. Alongside these skills, you must be able to understand circumstances, read people, and demonstrate. The educational requirement is a minimum of a high school diploma, although getting a degree in accounting or mathematics is highly regarded and preferable. On average, a credit and collection analyst earns $45,275 a year.

Credit representatives are experts who evaluate the credit details and budgets reports of firms or a singular person for ascertainment of chances of loaning money or lengthening credits. As a credit representative, you are obligated to organize documents with credit information that would, in turn, be used to making decisions. You will also credit documents and process credit statements from various credit reporting origins. Plus, you will instruct and tutor credit representatives recently employed on Company methods and rules. You are required to amplify the collation program and strategy to reduce DSO (Days sales outstanding) guideline risk and improve communication between outer sections or facilities through the formulation of rules of conduct.

To fit into this role, you must display great attention to detail, be a logical thinker, handle pressure, and have a solid working etiquette or principle. You must be honest, technologically skilled, and good at maths. You should also have a bachelor's degree in accounting, business, or finance, though it can be alternated with an associate degree depending on the employer's decision. You will earn an average of $35,022 per year, which is $16.84 per hour.