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Credit manager vs debt collector

The differences between credit managers and debt collectors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-8 years to become a credit manager, becoming a debt collector takes usually requires 6-12 months. Additionally, a credit manager has an average salary of $68,583, which is higher than the $33,865 average annual salary of a debt collector.

The top three skills for a credit manager include customer service, financial statements and credit card. The most important skills for a debt collector are customer service, outbound calls, and payment arrangements.

Credit manager vs debt collector overview

Credit ManagerDebt Collector
Yearly salary$68,583$33,865
Hourly rate$32.97$16.28
Growth rate17%-8%
Number of jobs63,89823,385
Job satisfaction--
Most common degreeBachelor's Degree, 67%High School Diploma, 34%
Average age4646
Years of experience812

What does a credit manager do?

A credit manager is an individual who supervises the credit granting process for a company by evaluating the creditworthiness of potential customers. Credit managers must maintain corporate credit policy to optimize company sales and reduce bad debt losses. They must manage the proper relationship with agencies such as the collection agency, credit insurance providers, and the sales department. Credit managers may work in different industries such as banks, accounting firms, or auto dealerships. They must also possess a bachelor's degree in financial management or related field.

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 manager vs debt collector salary

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

Credit ManagerDebt Collector
Average salary$68,583$33,865
Salary rangeBetween $39,000 And $119,000Between $26,000 And $43,000
Highest paying CitySan Francisco, CASan Francisco, CA
Highest paying stateOregonCalifornia
Best paying companyMicrosoftMayor Ethan Berkowitz
Best paying industryFinanceConstruction

Differences between credit manager and debt collector education

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

Credit ManagerDebt Collector
Most common degreeBachelor's Degree, 67%High School Diploma, 34%
Most common majorBusinessBusiness
Most common collegeUniversity of Pennsylvania-

Credit manager vs debt collector demographics

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

Credit ManagerDebt Collector
Average age4646
Gender ratioMale, 53.9% Female, 46.1%Male, 30.7% Female, 69.3%
Race ratioBlack or African American, 7.9% Unknown, 4.1% Hispanic or Latino, 15.3% Asian, 7.8% White, 64.5% American Indian and Alaska Native, 0.3%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 Percentage11%8%

Differences between credit manager and debt collector duties and responsibilities

Credit manager example responsibilities.

  • Manage treasury department including all cash management, bank relationships, and debt negotiations.
  • Manage an initiative to move customers from checks to ACH with CTX or EDI remittances.
  • Partner with small and entrepreneurial business to develop business plans and assist business owners with achieving payroll.
  • Launch the new SBA lending and residential mortgage lending programs.
  • Complete loan workouts and restructures on SBA 504 and LIHTC multifamily loans.
  • Leverage GBM using features generate on Experian's tradeline data through unsupervise learning tool Khiops.
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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 manager vs debt collector skills

Common credit manager skills
  • Customer Service, 16%
  • Financial Statements, 9%
  • Credit Card, 5%
  • Credit Risk, 5%
  • Credit Policy, 5%
  • Customer Accounts, 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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