Loan Clerk and Credit Authorizer
Loan clerks and credit authorizers play essential roles in the financial services sector, particularly within banks, credit unions, and other lending institutions. They are responsible for evaluating loan and credit applications, interacting directly with applicants to assess their personal and financial histories. Loan clerks focus on verifying information, determining eligibility, and preparing necessary documents for loan processing, while credit authorizers make decisions about extending credit based on predefined guidelines. Both positions typically require a high school diploma and involve short-term on-the-job training, making them accessible entry points into the finance industry.
These professionals work primarily in office environments and are expected to have strong organizational skills, a keen eye for detail, and proficiency in mathematics. Their work often involves the use of computers and financial analysis software. While the median annual salary for these roles is around $48,660, the field is characterized by a moderate job growth outlook of approximately 3%. For those aspiring to become loan officers, a bachelor’s degree in relevant fields such as business or finance is generally required, along with stronger sales skills for commission-based earnings. Overall, these careers are suited for individuals who enjoy working with financial data and customer service.
Loan Clerk and Credit Authorizer
Snapshot
Career Cluster(s): Agriculture, Food & Natural Resources, Finance
Interests: Financial trends, risk assessment, data analysis, organizing information, mathematics, customer service, sales
Earnings (Yearly Median): $48,660 per year $23.40 per hour
Employment & Outlook: 3% (Average)
Entry-Level Education High school diploma or equivalent
Related Work Experience None
On-the-job-Training Short-term
Overview
Sphere of Work. Loan clerks, credit authorizers, and loan officers are responsible for financial institutions' credit and loan activities. Loan clerks and credit authorizers interact directly with loan and credit applicants and interview them about their personal and economic histories. Loan officers also review and process loan and credit applications, participate in credit and loan fraud investigations, send out loan and credit approval or denial notices, respond to inquiries from loan and credit applicants, and notify customers of delinquent loans or credit accounts. They generally work under the direct supervision of credit and loan managers, who review and authorize all final loan and credit decisions.
Work Environment. Loan clerks and credit authorizers generally work in offices and call centers at commercial banks, credit card companies, mortgage companies, savings and loan associations, and credit unions. Loan officers frequently travel from their offices at financial institutions to client homes or businesses to negotiate loan agreements. Most loan clerks, credit authorizers, and loan officers work regular forty-hour weeks, although overtime may be required during peak business periods.
Occupation Interest. Individuals attracted to the loan and credit field tend to be organized and detail-oriented people who find satisfaction in tracking financial trends and assessing risk. Those who excel in loan and credit jobs demonstrate financial and mathematical acumen, focus, responsibility, and effective time management. Loan clerks, credit authorizers, and loan officers should be knowledgeable about finance, exhibit good judgment, and have a background in customer service. Loan officers who are persuasive and have experience in sales may enjoy greater success in this field as they frequently receive a commission or bonus for the loans they close.
A Day in the Life—Duties and Responsibilities. Loan clerks perform the background research necessary to determine an applicant’s credit or loan eligibility. They first interview loan and credit applicants about their financial history, including contact information, employer, education, debts, income, and assets. They also verify the identity of any loan co-signers, request credit ratings from credit bureaus and associations, and confirm the value of collateral (property used to ensure loan repayment). Once applications have been reviewed, loan clerks may be asked to send out loan and credit approval or denial notices. When a loan application is approved, the clerk must prepare and gather documents for the loan closing, record all related transactions, and provide repayment information to the client.
Loan officers perform more sophisticated and complex tasks in the loan application process. Depending on the size and type of the organization, they may personally interview clients and thoroughly investigate their credit histories, as a loan clerk does. Loan officers are additionally responsible for educating loan applicants about various loan and credit options, comparing credit histories of prospective borrowers, analyzing client financial statements, and reviewing and processing loan and credit applications. Under the guidance of the credit manager and institutional loan policies, the loan officer decides whether loans or credit should be extended to applicants. Once applications have been reviewed, loan officers may notify clients of loan and credit approval or denial. When a loan is approved, the loan officer calculates repayment schedules, negotiates terms, and finalizes loan transactions. Loan officers may also investigate credit fraud, prepare credit and loan history reports, create loan request summary reports for managers, and report delinquent accounts to credit agencies. Some specialize in personal or commercial loans or mortgages.
Credit authorizers determine credit eligibility and perform credit-related tasks. They receive notification of vendor charges and keep customer credit and loan payment records. Using this information and predefined guidelines, they determine whether a client is eligible for credit. As needed, they also prepare credit card charge plates for businesses and send charge statements and overdue notices to clients.
Investigators (241.267-030). Investigators do extensive investigations on the creditworthiness of individuals. Investigators typically go beyond the standard requirements by interviewing character witnesses, contacting applicants' neighbors, speaking with co-workers, and gathering health, social, moral, and legal information.
Credit Authorizers (249.367-022). Credit Authorizers authorize credit purchases against a credit card holder’s payment history or credit line.
Work Environment
Immediate Physical Environment. Loan clerks and credit authorizers generally work in office environments in commercial banks, credit card companies, mortgage companies, savings and loan associations, and credit unions. The work of a loan clerk or credit authorizer requires sitting at a desk and using computers for long periods each day. Loan officers are employed in similar office settings but often travel locally to work with clients.
Human Environment. Loan clerks, credit authorizers, and loan officers interact with loan applicants, business owners, colleagues, and supervisors. They should be comfortable discussing financial data with clients and must also be able to inform and instruct clients about loan procedures and options.
Technological Environment. Loan clerks and credit authorizers use computers and Internet tools for communication. Financial analysis software and spreadsheets are other basic tools they use to complete their work. Loan officers may use smartphones, email, accounting and management software, and basic office equipment.
Education, Training, and Advancement
High School/Secondary. High school students interested in pursuing a career as a loan clerk, credit authorizer, or loan officer should prepare by building good study habits and developing strong mathematical skills. High school courses in bookkeeping and mathematics will provide a solid foundation for work as a loan clerk and credit authorizer or college-level study in the field. High school students interested in this career path may benefit from seeking internships or part-time work with financial organizations that will familiarize them with credit procedures. Those wishing to become loan clerks or credit authorizers may find employment after high school. In contrast, those who intend to become loan officers should apply to college or university programs.
Postsecondary. Postsecondary students interested in becoming loan clerks and credit authorizers should consider completing finance and credit analysis training at vocational schools or community colleges. Those who intend to become loan officers should pursue a bachelor’s degree in economics, mathematics, accounting, or business. Computer science, political science, and ethics classes may also prove helpful in future work. Postsecondary students can gain work experience and a competitive advantage in future job searches by securing internships or part-time employment with local businesses or financial organizations.
Related Occupations
− Credit Manager
Bibliography
"43-4131 Loan Interviewers and Clerks." Bureau of Labor and Statistics, May 2023, www.bls.gov/oes/current/oes434131.htm. Accessed 23 Aug. 2024.
"Occupational Employment and Wages, May 2022; 43-4041 Credit Authorizers, Checkers, and Clerks." Occupational Employment Statistics. Bureau of Labor Statistics, US Department of Labor, 25 Apr. 2023, www.bls.gov/oes/current/oes434041.htm. Accessed 23 Aug. 2024.
"Financial Clerks." Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 6 Sept. 2023, www.bls.gov/ooh/office-and-administrative-support/financial-clerks.htm. Accessed 23 Aug. 2024.