Credit Manager
A Credit Manager, also known as a credit analyst or risk analyst, plays a crucial role in managing the credit operations of various organizations, including businesses, nonprofits, and government agencies. This professional is responsible for tasks such as developing credit-rating systems, collecting debts, setting credit limits, and reviewing the creditworthiness of applicants. Credit managers conduct financial research, producing risk assessment reports that inform decision-making among stakeholders. Typically, they work within office environments like banks and credit unions, and their duties may involve telecommuting or visiting clients as needed.
The profession demands strong analytical, mathematical, and organizational skills, attracting individuals who are detail-oriented and enjoy tracking financial trends. Daily responsibilities include analyzing financial statements, negotiating loan terms, managing loan portfolios, and ensuring debt collection. Education requirements typically include a bachelor's degree in fields like economics, accounting, or business, along with relevant work experience. The outlook for this profession is promising, with a median annual salary of approximately $139,790 and a projected job growth rate of 16%, indicating much faster than average demand in the field.
Credit Manager
Snapshot
Career Cluster(s): Business, Management & Administration, Finance, Human Services
Interests: Financial trends, risk assessment, mathematics, research
Earnings (Yearly Median): $139,790 per year $67.21 per hour
Employment & Outlook: 16% (Much faster than average)
Entry-Level Education Bachelor's degree
Related Work Experience Five years or more
On-the-job-Training None
Overview
Sphere of Work. Credit managers, also referred to as credit analysts, credit administrators, and risk analysts, are responsible for the credit operations of businesses, corporations, nonprofit organizations, and government agencies. They provide diverse financial services, which may include developing credit-rating evaluation systems, collecting debt, setting credit ceilings, and reviewing applicant credit eligibility. Credit managers conduct financial research and present their findings in financial risk reports reviewed by stockholders and stakeholders and used for organizational decision-making.
Work Environment. Credit managers work in offices, particularly in commercial banks, mortgage companies, savings and loan associations, and credit unions. Depending on the employer and particular job description, a credit manager may telecommute from a home office, visit client offices as a contractor, or work on a full-time basis in an employer’s office. A credit manager may work as a full-time member of a finance team or as a term-of-project contractor.
Occupation Interest. Individuals attracted to the credit management profession tend to be ambitious, organized, and detail-oriented people who find satisfaction in tracking financial trends and assessing risk. Those who excel as credit managers exhibit financial and mathematical acumen, intense focus, responsibility, and effective time management. Credit managers should enjoy finance and have a background in risk assessment.
A Day in the Life—Duties and Responsibilities. The daily duties and responsibilities of credit managers vary with job specialty and employer. Areas of credit management specialization include developing credit-rating evaluation systems, collecting debt, setting credit ceilings, and determining who is eligible for credit. Credit managers in commercial banks, mortgage companies, savings and loan associations, and credit unions are required to satisfy different constituents and meet different financial goals.
Credit managers perform or supervise a variety of credit-related operations for their employers. They analyze customer or client financial statements, assess the risk levels and outcomes associated with credit lending, write credit analysis reports, and draft credit or lending risk reports for chief financial officers, finance managers, and stockholders to use in making lending decisions. They are responsible for the processing of loan applications. This may involve requesting credit ratings from credit bureaus and associations, reviewing and approving or denying loan requests using expected return data based on credit histories of prospective borrowers, negotiating loan terms, and finalizing loan transactions. Credit managers must also manage loan portfolios and create loan request summary reports for financial and investment managers. They ensure the collection of outstanding debts from borrowers, oversee investigations of loan or credit fraud, report delinquent accounts to credit agencies, and set credit limits on credit cards or lines of credit. Credit managers may also consult on the development of technologies designed to prevent credit fraud. Those employed in smaller institutions are more likely to perform some or all of these tasks themselves.
In addition, organizations may require credit managers to select, implement, and troubleshoot financial software systems, as well as stay up to date with regulatory and ethical issues and news in finance by reading finance industry journals and participating in industry associations. Credit managers employed by learning institutions also participate in ongoing discussions of work teams, workflows, dynamics, and best practices.
Work Environment
Immediate Physical Environment. Credit managers generally work in pleasant office environments. The work of a credit manager requires sitting at a desk and using computers for long periods each day.
Human Environment. Credit managers interact with loan applicants, business owners, colleagues, and stockholders. They should be comfortable attending meetings, giving frequent speeches, and supervising and directing other financial employees, such as loan clerks and loan officers.
Technological Environment. Credit managers communicate using computers, telephones, and Internet communication tools. They rely on financial analysis software and spreadsheets to generate analyses and reports.
Education, Training, and Advancement
High School/Secondary. High school students interested in pursuing a career as a credit manager should prepare themselves by building good study habits and by developing ease with numbers and mathematical functions. High school coursework in bookkeeping and mathematics will provide a strong foundation for college-level study in the field. Due to the diversity of credit manager responsibilities, high school students interested in this career path may benefit from internships or part-time work with financial organizations.
Postsecondary. Postsecondary students interested in becoming credit managers should earn a bachelor’s degree in economics, mathematics, accounting, or business. Classes in computer science, political science, and ethics may also prove useful in their future work. Postsecondary students can gain work experience and potential advantage in their future job searches through internships or part-time employment with local businesses or financial organizations.
Related Occupations
− Auditor
− Loan Clerk & Credit Authorizer
Bibliography
“Financial Managers.” Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 17 Apr. 2024, www.bls.gov/ooh/management/financial-managers.htm. Accessed 28 Aug. 2024.