Finance qualifications can refer to one of two things. In one sense, they can describe the educational requirements for particular jobs in the financial sector, or they can describe the requirements financial institutions have for lending money to prospective borrowers. These qualifications differ from job to job and financial product to financial product.
A bachelor's degree is one of the basic qualifications needed to work in the financial sector. Individuals with high school diplomas or two-year degrees can often work as bank tellers or as low level accountants, but positions that involve certifying tax filings usually require a four-year college degree. Accountants also generally require an additional certification for working with their particular government's tax code before they can certify filings. Lower level accountants will work under the certified accountant's supervision, and the certified accountant will be responsible for the accuracy of their work.
Financial planners are responsible for organizing their clients' money and investments. These professionals need to know how different investment vehicles work and learn how to read movements in the market. These skills are necessary for the financial planner to know how to distribute each client's money between different investment vehicles, in order to achieve their individual financial goals. Finance qualifications for this position usually include a four-year bachelors degree in business or economics, as well as any professional development courses large financial institutions may require planners to complete.
When a borrower wants a line of credit or a loan from a bank, the financial institution will have its own set of requirements the applicant must meet. These are also called finance qualifications. One of these rules usually involves having a sufficient income to repay the loan. Typically, the larger the loan amount, the higher the income a bank will require of the borrower. Prospective borrowers will need to prove their income with documentation, such as pay stubs or letters from their employers that verify their incomes.
In addition to the borrower's current income, the bank will have finance qualifications regarding his or her credit history. Individuals who have always made their payments for loans and credit cards on time, and used their credit lines responsibly, are considered safer prospects for loans than those with poor credit records. Financial institutions may still extend credit or loans to individuals with poor credit histories, but the amount of the loans or size of the credit line will generally be smaller and carry higher interest rates. These smaller loans shield the financial institution from losing too much money if the individual fails to repay, and the higher interest rate compensates the bank for taking the risk of loaning the individual money.