Credit Clerks and Authorizers

• Nature of the Work

  Credit clerks or authorizers review credit history and obtain the information needed to determine the creditworthiness of loan and credit card applicants. Credit clerks contact applicants, credit bureaus, and other sources for information, and verify the completeness of loan documents. Credit authorizers refer to credit records and reports to decide whether to approve a customer's credit card purchase.

  Clerks in credit bureaus secure, update, and verify information for credit reports. These workers are often called credit investigators or reporters. Clerks in banks and other financial institutions process loan and credit applications. Some clerks verify employment and financial information of credit card applicants. Loan processing clerks prepare loan applications for underwriters. They review loan applications, contact credit bureaus and reporting agencies for applicant records, and contact employers, banks, and references to verify personal and financial information. Clerks order appraisals from appraisal companies and secure tax forms, bank statements, and any required government forms from applicants. They calculate debt-to-income ratios to see that applicants meet the minimum guidelines for a loan. If any information in the loan package is inaccurate or incomplete, clerks contact the proper source for further information. Closing clerks obtain and prepare documents needed for real estate settlements. The closing clerks check to see that all documents are complete, accurate and correctly signed including deeds of trust, hazard insurance papers, and title commitments-and that all loan conditions required for settlement have been met.

  Credit authorizers approve charges against customers' existing accounts. Most charges are approved automatically by computer. However, when accounts are past due, overextended, invalid, or show a change of address, sales persons refer transactions to credit authorizers located in a central office. Authorizers evaluate the customers' computerized credit records and payment histories and quickly decide whether or not to approve new charges. Authorizers may enter address changes and credit extensions into computer credit files.

• Working Conditions

  Credit clerks and authorizers usually work a 35- to 40-hour week. However, during particularly busy periods, they may work overtime. For credit clerks handling residential real estate, the busy periods are spring and summer and at the end of the month. For credit authorizers, busy periods are during the holiday shopping seasons and on store sale days. In fact, temporary workers are often hired as credit authorizers during peak workloads. In retail establishments, authorizers may work nights and weekends during store hours.

  Credit authorizers and some credit clerks sit for long periods in front of video display terminals, which may cause eyestrain and headaches.

• Employment

  Credit clerks and authorizers held about 258,000 jobs in 1994. About 8 out of 10 were employed by commercial banks and other depository institutions, and mortgage banks and other nondepository institutions. Other credit clerks and authorizers were employed by insurance and real estate firms, credit reporting and collection agencies, and wholesale and retail trade establishments.

• Training, Other Qualifications, and Advancement

  No specific training is needed for entry-level positions in credit clerking and authorizing, with the exception of loan closing and loan interviewing. Closers and interviewers are often required to have previous work experience, preferably in financial institutions, and some knowledge of underwriting.

  New employees are generally trained on the job, working under the close supervision of more experienced workers, although some firms offer formal training. Some credit workers also take courses in credit offered by banking and credit associations, public and private vocational schools, and colleges and universities. As workers demonstrate competence, they can advance to team leader of a small group of clerks, loan or credit department supervisor, underwriter, loan officer, or management. For management positions, employers prefer applicants with a bachelor's degree in business or a related field, or at least some college-level business or management courses.

  Because positions in these fields involve much telephone contact, good communication skills are a necessity. Good organizational skills and the ability to pay attention to detail are also important. Many credit checkers use computers to enter and retrieve data, so some computer skills and good typing speed are required.

• Job Outlook

  Little change is expected in the employment of credit clerks and authorizers over the 1994-2005 period. The year 1994 was characterized by significant growth over previous years in the number of real estate, retail sales, and other transactions requiring credit. Projected employment reflects a slowdown in loan activity. The interpersonal nature of loan clerking and the judgment required of authorizers ensure that computers will not significantly affect employment. In addition to jobs created by growth, many jobs will become available as credit clerks and authorizers leave the occupation for various reasons.

  Job outlook in this occupation is affected by changes in the economy. During periods when credit or loans are restricted, the number of job openings for credit clerks and authorizers may be limited.

• Earnings

  According to a 1994 survey of mortgage banking companies conducted by Carl D. Jacobs & Associates, the average salary for loan processors was $22,500, and the average salary for loan closers was $23,500.

  Full-time workers generally receive health insurance, vacation and sick leave, and other standard benefits; part-timers may not. In addition, workers in retail establishments usually receive a discount on store purchases.

• Related Occupations

  Occupations with duties similar to those of credit clerks and authorizers include claim examiners and adjusters, customer-complaint clerks, procurement clerks, probate clerks, and collection clerks.

• Sources of Additional Information

  Information about local job opportunities for credit clerks and authorizers may be obtained from banking institutions, retail stores, and credit reporting agencies.

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