Got What It Takes?

A career in credit management can be a very fulfilling, lucrative one, particularly at a time when our country is experiencing financial instability. Banks and other lenders, are taking a harder look at consumers' ability to repay any loans they may take out. A credit manager must be able to review a potential borrower's credit report as well as other pertinent information such as income and job stability, the length of time that the borrower has been on his/her job and in his/her residence. The days when "sub prime" lending was all the rage are over, at least for now. It was not long ago that mortgage lenders as well as other lenders would overlook credit problems, including past bankruptcies, charge-offs and judgments and would focus on the borrower's current financial situation instead. Some lenders were also lending up to 125% of the home's value which caused problems later on when home values took a dive and borrowers ended up owing more on the home than it was worth. Being a good credit manager today takes attention to detail, a willingness to learn the "new way" of lending and a strong conviction that you are doing the customer a favor rather than causing him/her to get into financial trouble. Also, today's credit managers have to look after their employer's best interests as many banks and lenders are not selling off their loans and thus, are servicing the loan as well as making it. Another area of credit management is collections. Recovering funds from loans in default and perhaps making decisions regarding the best approach to collect the money take a professional with the training and disposition to handle disgruntled customers who do not want to pay back their debt. In many cases, people are strapped for cash and are just barely making ends meet. In that case, a good credit manager can step in and offer alternative debt repayment terms or perhaps offer to negotiate the balance owed. For instance, if a debtor owes $1000.00, you may be authorized by your employer to reduce the balance due to $500.00. In that case, the borrower may be willing to pay the debt off in order to clear the collection from his/her credit report. The bad news for consumers is good news for employees seeking work in credit management. Even with a minimal background in consumer lending or mortgage processing, you may be able to qualify for a credit management (or assistant credit management) position. Delinquencies in all manner of loans are on the rise and need professional intervention. Bank managers today have too many other responsibilities on their plate to handle all of the delinquencies that come across their desk. Working up solutions to credit problems, approving loans for credit worthy patrons and making telephone calls in order to collect a debt are just part of the job. You will also have to work as a part of a team and be able to supply reports during meetings. All in all, credit management today is a rewarding profession where you can reach your goals and work with many interesting people. For more information on credit management, visit http://creditmicroblog.com and http://managementmicroblog.com