System and method for assigning a line of credit to a credit card account

Abstract

A system assigns a credit limit to an account for a credit card of a card holder based on whether the card holder poses an acceptable risk. The system activates an account for the credit card, assigns an initial credit limit well below a tolerance level to the account, develops credit history data based on account activity during predetermined short intervals of time, evaluates the credit history data after each of the predetermined short time intervals, and determines whether to increase the credit limit of the account based on the evaluated credit history.

1 - 33 . (canceled) 
     
     
         34 . A computer-implemented method for managing a credit limit for a credit card issued to a card holder, comprising:
 initiating activation of an account for the credit card;   assigning an initial credit limit to the account, the initial credit limit being below a tolerance level for the card holder;   developing credit history data based on the card holder's use of the account during respective predetermined intervals of time, wherein the card holder's use of the account reflects whether the card holder used all or most of the initial credit limit and how quickly the card holder used all or most of the initial credit limit;   evaluating, by a computer, the developed credit history data after each of the predetermined time intervals; and   determining, by the computer, whether to increase the credit limit of the account based on the evaluation.   
     
     
         35 . The method of  claim 34 , further comprising:
 obtaining information from a credit bureau regarding the card holder.   
     
     
         36 . The method of  claim 35 , wherein the information from the credit bureau relates to at least one prior declaration of bankruptcy by the card holder. 
     
     
         37 . The method of  claim 34 , wherein the predetermined intervals of time cover a predetermined number of payment cycles reflecting less than one year of the card holder's use of the account. 
     
     
         38 . The method of  claim 34 , wherein the tolerance level is based on an industry standard level of risk associated with the card holder. 
     
     
         39 . The method of  claim 34 , wherein the tolerance level is based on the card holder's credit history. 
     
     
         40 . The method of  claim 34 , wherein a financial service provider issues the credit card and develops the credit history. 
     
     
         41 . The method of  claim 34 , wherein the card holder's use of the account further reflects at least one of: late or missing payments made by the card holder, cash advances requested by the card holder, types of purchase transactions made by the card holder, and the amount of initial payments made by the card holder to the account. 
     
     
         42 . The method of  claim 34 , wherein the card holder's use of the account comprises each transaction made by the card holder with the credit card during the respective predetermined interval of time. 
     
     
         43 . The method of  claim 34 , wherein evaluating the developed credit history data further comprises generating a score based on the card holder's use of the account over each respective predetermined time interval. 
     
     
         44 . The method of  claim 43 , wherein the decision to increase the credit limit of the account is based on the score generated from evaluating the developed credit history. 
     
     
         45 . The method of  claim 41 , wherein the card holder's use of the account further reflects making only minimum payments to the account. 
     
     
         46 . A system for managing a credit limit for a credit card issued to a card holder, comprising:
 a memory storing instructions; and   a processor configured to execute the instructions to:
 initiate activation of an account for the credit card; 
 assign an initial credit limit to the account, the initial credit limit being below a tolerance level for the card holder; 
 developing credit history data based on the card holder's use of the account during respective predetermined intervals of time, wherein the card holder's use of the account reflects whether the card holder used all or most of the initial credit limit and how quickly the card holder used all or most of the initial credit limit; 
 evaluating the developed credit history data after each of the predetermined time intervals; and 
 determining whether to increase the credit limit of the account based on the evaluation. 
   
     
     
         47 . The system of  claim 46 , wherein the card holder's use of the account further reflects at least one of: late or missing payments made by the card holder, cash advances requested by the card holder, types of purchase transactions made by the card holder, and the amount of initial payments made by the card holder to the account. 
     
     
         48 . The system of  claim 47 , wherein the card holder's use of the account is based on each transaction made by the card holder with the credit card during the respective predetermined short interval of time. 
     
     
         49 . The system of  claim 47 , wherein the processor is further configured to:
 evaluate the developed credit history data by generating a score based on the card holder's use of the account over each respective predetermined short time interval; and   determine whether to increase the credit limit of the account based on the generated score.   
     
     
         50 . A non-transitory computer readable medium for managing a credit limit for a credit card issued to a card holder; the medium comprising instructions that, when executed by a processor, cause the processor to perform operations comprising:
 initiating activation of an account for the credit card;   assigning an initial credit limit to the account, the initial credit limit being below a tolerance level for the card holder;   developing credit history data based on the card holder's use of the account during respective predetermined intervals of time, wherein the card holder's use of the account reflects whether the card holder used all or most of the initial credit limit and how quickly the card holder used all or most of the initial credit limit;   evaluating the developed credit history data after each of the predetermined time intervals; and   determining whether to increase the credit limit of the account based on the evaluation.   
     
     
         51 . The non-transitory computer readable medium of  claim 50 , wherein the card holder's use of the account further reflects at least one of: late or missing payments made by the card holder, cash advances requested by the card holder, types of purchase transactions made by the card holder, and the amount of initial payments made by the card holder to the account. 
     
     
         52 . The non-transitory computer readable medium of  claim 50 , wherein the card holder's use of the account is based on each transaction made by the card holder with the credit card during the respective predetermined short interval of time. 
     
     
         53 . The non-transitory computer readable medium of  claim 50 , wherein the processor further generates a score based on the card holder's use of the account over each respective predetermined short time interval, and determines whether to increase the credit limit of the account based on the generated score.