What Is The Difference Between A Credit Analyst And A Underwriter?

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Credit analysts and underwriters are similar positions in some ways, in that if you’re interested in a career that involves financial analysis, along with helping individuals and businesses meet their financial goals, then a career as a credit analyst or underwriter might be for you. 

But even though both careers have some similarities they also have key differences primarily in the level at which they make financial decisions. Some of these differences are in their daily jobs.  

A credit analyst evaluates credit history to determine the risks of granting a particular individual a loan. An underwriter analyses documents from clients, including credit information and tax history, to determine the loan options that can be provided by a financial institution considering granting a loan. 

In their educational requirements both Credit Analyst and Underwriter seek a Bachelor’s degree. But for an Underwriter it’s a bachelor’s degree in business, finance and accounting whereas for a Credit analyst it’s a Bachelor’s degree in math, business, economics, or accounting 

While in their responsibilities undertaken Credit analysts and Underwriters are both responsible for analysing financial data to determine if a loan or other credit should be granted. Credit analysts are usually responsible for analysing the creditworthiness of a person or business. They compile clients’ payment history, income, and personal savings and then use this information to determine how risky it would be to grant a loan or increase credit.  

Underwriters review clients’ loan applications and look at their financial information to determine what kind of loan they can offer an individual. Underwriters often turn over their findings to Credit analysts in order to verify approval of a loan. Both of these positions must follow all government regulations pertaining to banking and loaning money. 

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