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Credit clerk vs debt collector

The differences between credit clerks and debt collectors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a credit clerk, becoming a debt collector takes usually requires 6-12 months. Additionally, a debt collector has an average salary of $33,865, which is higher than the $32,870 average annual salary of a credit clerk.

The top three skills for a credit clerk include data entry, customer service and customer accounts. The most important skills for a debt collector are customer service, outbound calls, and payment arrangements.

Credit clerk vs debt collector overview

Credit ClerkDebt Collector
Yearly salary$32,870$33,865
Hourly rate$15.80$16.28
Growth rate-5%-8%
Number of jobs86,92223,385
Job satisfaction--
Most common degreeBachelor's Degree, 36%High School Diploma, 34%
Average age5146
Years of experience612

What does a credit clerk do?

Credit clerks control their company's credit and collection policies and daily procedures. They use the database to improve their organization's collections and maintain records for internal control and compliance. They deal with collecting, investigating, analyzing, and correcting disputed accounts to serve customers better and increase their collection rate. These clerks work with a credit manager to identify which accounts need to be written off for bad debt and solve complex cases that require special collection attention. They sometimes negotiate with customers to discuss the terms of payment for their unpaid balances.

What does a debt collector do?

Debt collectors are also known as collection agencies and are responsible for recovering past due debts. Most of them are hired by companies to collect debt either for a fee or a percentage of the total amount recovered. Also, some debt collectors buy delinquent debts at a discount and seek to collect the debt's full amount. They have many strategies to collect debts, including calling debtor's phones, sending letters, and even visiting them at their home. However, if debtors fail to pay their due, debt collectors can either update the debtor's credit report or sue them over debt. Once sued and debtors ignore court hearings and lose by default, results could either be garnishment on debtor'debtors' wages or levies on their bank.

Credit clerk vs debt collector salary

Credit clerks and debt collectors have different pay scales, as shown below.

Credit ClerkDebt Collector
Average salary$32,870$33,865
Salary rangeBetween $26,000 And $40,000Between $26,000 And $43,000
Highest paying CitySpringfield, ORSan Francisco, CA
Highest paying stateOregonCalifornia
Best paying companyJBS USAMayor Ethan Berkowitz
Best paying industryAutomotiveConstruction

Differences between credit clerk and debt collector education

There are a few differences between a credit clerk and a debt collector in terms of educational background:

Credit ClerkDebt Collector
Most common degreeBachelor's Degree, 36%High School Diploma, 34%
Most common majorBusinessBusiness
Most common collegeUniversity of Pennsylvania-

Credit clerk vs debt collector demographics

Here are the differences between credit clerks' and debt collectors' demographics:

Credit ClerkDebt Collector
Average age5146
Gender ratioMale, 14.3% Female, 85.7%Male, 30.7% Female, 69.3%
Race ratioBlack or African American, 6.9% Unknown, 4.0% Hispanic or Latino, 14.7% Asian, 6.6% White, 67.1% American Indian and Alaska Native, 0.6%Black or African American, 12.2% Unknown, 4.0% Hispanic or Latino, 20.0% Asian, 3.4% White, 59.9% American Indian and Alaska Native, 0.5%
LGBT Percentage7%8%

Differences between credit clerk and debt collector duties and responsibilities

Credit clerk example responsibilities.

  • Manage resident's private information for insurance verification, billing, and eligibility to apply for Medicaid.
  • Maintain payroll, attendance records, coordinate group travel arrangements and conference calls.
  • Prepare, check, and maintain various records and payroll reports.
  • Transfer loans from warehouse to permanent investor reports on the CPI systems.
  • Process applications for credit, Microsoft excel, AS400 , 10key by touch, type 45 wpm.
  • Travele to the post office to drop off approve incidents and pick up remittance items from the assigned lockboxes.
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Debt collector example responsibilities.

  • Prevent impeding loss and increasing profitability through negotiation and enforcement of schedule collection campaigns, consistently achieving high success standards.
  • Work with FHA, obama programs at the time.
  • Educate customers on ways to get medical assistance such as Medicaid, Medicare etc.
  • Prevent foreclosure by putting people on repayment plans, submitting requests for modifications, or deed in lieu.
  • File Medicaid, Medicare and commercial claims consisting of PPO discounts, nurse practitioner discounts, humanitarian discounts, etc.
  • Maintain security and confidentiality of company and client information, following FDCPA regulations.
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Credit clerk vs debt collector skills

Common credit clerk skills
  • Data Entry, 13%
  • Customer Service, 12%
  • Customer Accounts, 6%
  • Credit Card Payments, 5%
  • Financial Statements, 5%
  • AS400, 4%
Common debt collector skills
  • Customer Service, 9%
  • Outbound Calls, 9%
  • Payment Arrangements, 8%
  • Delinquent Accounts, 8%
  • Credit Card Payments, 6%
  • FDCPA, 5%

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