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A credit analyst is one who assesses how good an individual or a company applying for loans or credits is in honoring repayment obligations. The major work of this analyst is to gather data from a variety of sources; review credit history and documents; and, identify a risk rating about that borrower against a face card to determine if the borrower is eligible. Automated systems and various financial models are used to estimate repayment probability and possible risks. Their insights play a key role in the decision-making process for lenders, banks, and investment firms. They need a very strong financial background, attention to detail, and proficiency in financial analysis software.
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The credit analyst determines the creditworthiness of an individual, organization, or company by looking at some financial data, credit scores, and market trends to assess the risk of lending and extending.
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