How Do You Become a Credit Analysis Manager?

When surveying the available jobs in financial management, don’t overlook the position of credit analysis manager. As mid-level finance professionals, credit analysis managers are responsible for supervising a company’s credit analysts to ensure apt decisions about potential clients’ credit worthiness are made. Credit analysis managers are given the final say when implementing policies analysts utilize when determining the degree of risk for loans. They’ll carefully review financial reports created by analysts to ultimately approve or reject applications. As the economy recovers and consumers look to purchase, the demand for credit analysis managers will also rise. The Bureau of Labor Statistics predicts financial management job growth by seven percent from 2014 to 2024 for over 37,700 openings. Here’s a step-by-step guide for how you can become a credit analysis manager.

Graduate with a Bachelor’s Degree

Every credit analysis manager’s career begins by earning a bachelor’s degree from a four-year, post-secondary institution. Most credit analysis managers acquired an undergraduate major in finance, but other great options include statistics, economics, math, insurance, and business administration. Attending a top-tier business school with AACSB accreditation will add the most impressive credentials to your resume. Bachelor’s programs will teach you financial analysis methods, including credit assessment, risk management, and ratio analysis. Taking on an internship or co-operative is suggested to jumpstart the second step.

Obtain Credit Analysis Experience

Before becoming a credit analysis manager, you’ll need to gain actual work experience as a credit analyst. Entry-level positions typically will involve on-the-job training and trial periods while you master the company’s financial software. Most credit analyst jobs are found in retail, investment, and commercial banks. Credit analysis is important in any industries where financing is extended though, including auto dealerships and mortgage brokerages. You’ll likely need at least five years of experience analyzing client data before advancing to credit analysis manager.

Consider Attending Graduate School

Even though it’s expensive, investing in graduate school can pay off by speeding up your progression to credit analysis manager. Many employers prefer hiring candidates with a Master of Business Administration (MBA) from a reputable business school. Full-time, part-time, online, and executive MBA programs are available for your convenience. If possible, select a concentration in finance, risk management, or banking. Obtaining a Master of Science in Finance (MSF) could be beneficial too. Master’s programs generally take 18 to 36 months, but provide valuable propulsion for launching into management.

Pursue CFA Certification

This final step is optional, but credit analysis managers should consider becoming a Chartered Financial Analyst to stand out, according to the Chartered Financial Institute. The CFA Institute offers this prestigious credential to managers with above-average analysis expertise. To apply, you must hold a bachelor’s degree, attain four years of qualified work experience, and follow the CFA Code of Ethics. Candidates take three rigorous exams to test their knowledge of analytical methods. Each exam necessitates at least 300 hours of study sessions. Those who pass join a global community of over 135,000 CFA charterholders.

Related Resource: Auditing Clerk

Credit analysis managers lead an exciting, lucrative job to monitor a company’s credit lines and account balances. It’s their duty to implement effective policies that credit analysts utilize when judging whether financing applicants are worthy or risky. Credit analysis managers bring home a median yearly salary of $94,952, according to Salary.com. Consider taking these steps to become a credit analysis managers and help keep organizations profitable.