Credit adviser

Description

Credit intermediaries are natural or legal persons who offer credit agreements to consumers. They act on behalf of creditors to conclude agreements with consumers.

Credit advisers offer guidance to customers related to credit services. They assess the customer’s financial situation and debt issues arisen from credit cards, medical bills and car loans in order to identify optimal credit solutions for customers and also provide debt elimination plans to adjust their finances if needed. They prepare qualitative credit analyses and decision-making material in respect of defined customers in conformity with the bank’s strategy on credit policy, ensure the credit quality and follow up on the performance of the credit portfolio. Credit advisers also have expertise in debt management and credit consolidation.

The duties of a credit adviser typically include, but are not limited to:

  • Providing financial advice to clients on topics such as budgeting, debt relief, insurance options, and retirement planning
  • Reviewing loan application documentation including income statements, bank statements, and tax returns
  • Negotiating with creditors to lower interest rates and reduce principal balances
  • Preparing reports detailing financial status of clients, including income sources and expenses, assets and liabilities, and credit scores
  • Reviewing loan applications to assess borrower creditworthiness and to determine an appropriate loan amount based on the borrower’s ability to repay the loan
  • Explaining loan terms and conditions to clients in order to help them make informed decisions about their loans
  • Meeting with clients to discuss their financial goals and needs and to recommend appropriate solutions for financing those goals
  • Assisting clients with managing their credit scores by providing recommendations on improving their credit report
  • Determining a client’s eligibility for loans based on their current income, assets, and other relevant factors

Other titles

The following job titles also refer to credit adviser:

credit advisors
credit counselors
certified credit counselor
certified credit counselors
credit analysts
credit intermediary
credit counsellors
credit intermediaries
debt counselors
debt counsellor
certified credit counsellors
debt counsellors
credit counselor

Working conditions

Credit advisers work in a variety of settings, including banks, credit unions, and other financial institutions. They typically work during regular business hours, although they occasionally work evenings or weekends to meet with clients.

Credit advisers typically work in an office setting but may travel to meet with clients or attend conferences. The work can be stressful, as credit advisors must often deal with clients who are in financial distress. However, credit advisers find their work to be rewarding, as they help people improve their financial situation and reach their financial goals.

Minimum qualifications

Most credit advisers have a bachelor’s degree in finance, accounting, or business administration. Some employers may also require credit advisers to have a minimum of two years of experience in finance or accounting.

Credit advisers typically receive on-the-job training to learn the specific processes and procedures of their role. This training may include shadowing current credit advisers or learning from a supervisor or manager. Training may last a few days to a few weeks, depending on the company and the role.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Credit adviser is a Skill level 3 occupation.

Credit adviser career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to credit adviser.

credit analyst
mortgage loan underwriter
mortgage broker
loan officer
credit manager

Long term prospects

These occupations require some skills and knowledge of credit adviser. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of credit adviser with a significant experience and/or extensive training.

actuarial consultant
insurance rating analyst
investment analyst
bankruptcy trustee
corporate investment banker

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of credit adviser.

  • Financial products: The different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.
  • Economics: Economic principles and practices, financial and commodity markets, banking and the analysis of financial data.
  • Insolvency law: The legal rules regulating the incapacity to pay debts when they fall due.
  • Debt systems: The processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.
  • Credit control processes: The various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.

Essential skills and competences

These skills are necessary for the role of credit adviser.

  • Analyse loans: Examine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bills.
  • Maintain client debt records: preserve a list with the debt records of clients and update it regularly
  • Assess debtor’s financial situation: Assess the defaulter’s pecuniary circumstances by evaluating the personal income and expenses, and the balance sheet which includes the value of the house, bank account, car and other assets.
  • Examine credit ratings: Investigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.
  • Provide support in financial calculation: Provide colleagues, clients or other parties with financial support for complex files or calculations.
  • Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
  • Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
  • Prepare credit offers: Identify the credit needs of clients, their financial situation and debt issues. Identify optimal credit solutions and offer tailored credit services.
  • Maintain credit history of clients: Create and maintain the credit history of clients with relevant transactions, supporting documents, and details of their financial activities. Keep these documents updated in case of analysis and disclosure.
  • Perform debt investigation: Use research techniques and tracing strategies to identify overdue payment arrangements and address them
  • Analyse the credit history of potential customers: Analyse the payment capacity and credit history of potential customers or business partners.
  • Consult credit score: Analyse the credit files of an individual, such as credit reports which outlines a person’s credit history, in order to assess their creditworthiness and all the risks that would be involved in granting a person a loan.
  • Provide financial product information: Give the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of credit adviser. However, mastering this knowledge allows you to have more opportunities for career development.

  • Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
  • Credit card payments: The methods involving payment done through credit cards.
  • Corporate social responsibility: The handling or managing of business processes in a responsible and ethical manner considering the economic responsibility towards shareholders as equally important as the responsibility towards environmental and social stakeholders.
  • Audit techniques: The techniques and methods that support a systematic and independent examination of data, policies, operations and performances using computer-assisted audit tools and techniques (CAATs) such as spreadsheets, databases, statistical analysis and business intelligence software.
  • Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
  • Consumer protection: The current legislation applicable in relation to the rights of consumers in the marketplace.
  • Accounting techniques: The techniques of recording and summarising business and financial transactions and analysing, verifying, and reporting the results.
  • Mortgage loans: The financial system of acquiring money by property owners or prospective property owners, in which the loan is secured on the property itself so that the property can be repossessed by the lender in the absence of payments due by the borrower.
  • Property law: The law and legislation that regulates all the different ways to handle property, such as the types of property, how to handle property disputes and property contract rules.
  • Business loans: Loans which are intended for business purposes and which can either be secured or unsecured depending on whether a collatoral is involved. The different types of business loans such as bank loans, mezzanine finance, asset-based finance, and invoice finance.
  • Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.
  • Tax legislation: Tax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of credit adviser. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Advise on risk management: Provide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.
  • Advise on credit rating: Share your expertise in the evaluation process which assesses the debtor’s ability, be it a government institution or a business, to pay back its debt.
  • Interview bank loanees: Perform interviews with candidates requesting a bank loan for different purposes. Pose questions in order to test the goodwill and the financial means of candidates for paying back the loan.
  • Assess risks of clients’ assets: Identify, evaluate and determine the actual and potential risks of your clients’ assets, considering confidentiality standards.
  • Prepare credit reports: Prepare reports which outline an organisation’s likelihood of being able to repay debts and do so in a timely manner, meeting all the legal requirements linked to the agreement.
  • Develop investment portfolio: Create an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natural and technical disasters.
  • Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
  • Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
  • Synthesise financial information: Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.
  • Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
  • Communicate with banking professionals: Communicate with professionals in the field of banking in order to obtain information on a specific financial case or project for personal or business purposes, or on behalf of a client.
  • Determine loan conditions: Calculate the credit limit and decide on the conditions for the repayment.
  • Forecast future levels of business: Predict how the business will perform in future, potential expenditures and revenues to project situations for future periods.
  • Monitor national economy: Supervise the economy of a country and their financial institutions such as banks and other credit institutions.
  • Budget for financial needs: Observe the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.
  • Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

ISCO group and title

3312 – Credit and loans officers


References
  1. Credit adviser – ESCO
  2. Credit Advisor Job Description: Salary, Duties, & More – Climb the Ladder
Last updated on January 29, 2023

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