[jord0205]

Ok. So at my workplace (we manufacture) we have 2 people doing the credit department. I do references and one other person does the applications, inquiries and account management.

I recently told my boss I'm interested in doing all of it. But, I don't know what kind of training I need or what I should have.

Does anyone here have any background in Credit and can steer me in some sort of direction or give me some advice?

What kind of training is necessary or good to have?
What should I look out for in terms of bad apps?
What do you think the positives and negatives are of this kind of work?

Thanks!!

[Chrissy Scivicque]

I worked in credit for over 4 years so here's my advice for what it's worth. (BTW, I was doing consumer and residential lending for a national financial institution)

You need to understand the industry,the laws that impact you, the standards which your company uses, and your customers. You need to be detail oriented - don't breeze over the small stuff because it will come back to bite you for sure. And look out for anything suspicious or just things that don't make sense. People lie on credit applications all the time, especially in a down economy. No one who gets declined acts like they suspected it, but most of the time they know they're credit isn't great. It's very embarrassing and can be quite emotional. That was the hardest part for me - giving people the bad news when their loan was declined or when we could only offer a ridiculously high rate of interest.

Working in credit can be hard if you're dealing with individuals for exactly this reason. Also, you may see people taking loans that you don't think are appropriate. Currently, lending standards have tightened up across the board due to the economy. When I was lending, banks were practically giving money to anyone who walked through the door - at variable interest rates. Being a realist, I saw that the rates would inevitably go up one day and cause these clients some serious problems. But what do you do? They want the loan, the bank wants to give them the loan, so you have to let it happen. I know - for a fact - that some of the customers I gave loans to are having some hard times now. That's hard to deal with.

If you're doing credit for businesses, it's a little easier,though the process is a bit more complicated and involved. But it doesn't seem to be nearly as emotional.

Alternatively, credit can be quite an interesting field. The credit rating system is intricate and mysterious and learning about it can be fun. The work (for me) was always very steady, though recently I'm sure it's slowed down quite a bit.

In terms of training, I'm not aware of any particular classes or anything but I'm sure they're out there. Communication skills are probably the most essential to focus on if you'll be fielding inquiries and dealing with clients directly. Issuing credit is something that you have to be careful with - you need to make sure that people understand what they are getting in to.

I think it sounds great that you're looking to take on the entire process. I'm sure you'll enjoy handling accounts from beginning to end. It's always more satisfying to "own" something rather than just do a small piece of it. And it will be fun to learn new skills as well. Good luck to you! I hope you're boss agrees to let you take over the process.