The invention discloses a credit management system and a credit processing method thereof. The system comprises a customer information module, a loan approval module, a loan origination module, a loan collection module, a post-loan management module, a five-level classification module, an inquiry analysis module, an information maintenance module and a system setting module. Through the invention, the loan management level of a credit cooperative can be quickly improved, the economical benefits of the credit cooperative are increased, the loan data of the credit cooperative is standardized, the management of the credit cooperative is facilitated, dynamic supervision on loan is enhanced, and the credit risk is resolved and controlled; and moreover, the loan data of all branches can be gathered in the cooperatives, and each cooperative performs effective control on each business so as to truly realize electronization and informatization of credit management.