Method and system for issuing a secured credit card

• US 5,950,179 A
• Filed: 12/03/1996
• Issued: 09/07/1999
• Est. Priority Date: 12/03/1996
• Status: Expired due to Term

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Providian Financial Corporation
• Inventors: Buchanan, William B., Johnston, Charles S., Van Duinen, Roger J., Greiner, Dawn E.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Irshadullah, M.
• Application Number:
  US08/760,148
• Time in Patent Office: 1,008 Days
• Field of Search: 705/35, 705/38, 235/379, 235/380, 283/108, 283/57, 380/25
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A computer-implemented method for issuing a credit card to a customer who has difficulty qualifying for unsecured credit or who requests a secured credit card. A card request input is received indicating that a customer has made a request for a credit card, and, in response, a credit card account with an initial credit limit is created for the customer. The initial credit limit is stored by computer. A credit card us issued to the customer before receipt of an indication of a deposit to a savings account to secure the credit card. A balance of the savings account is periodically monitored by computer for an initial deposit, and a new credit limit is computed when the initial deposit has been made.

Claims

1. A computer-implemented method for issuing a credit card to a customer who has difficulty qualifying for unsecured credit or who requests a secured credit card, comprising:

receiving a card request input indicating that a customer has made a request for a credit card;

creating a credit card account with an initial credit limit for the customer in response to the card request input;

storing the initial credit limit by computer;

issuing a credit card to the customer before receipt of an indication of a deposit to a savings account to secure the credit card;

marking the account as unfulfilled when the credit card is issued;

periodically monitoring by computer a balance of the savings account for an initial deposit;

computing and storing a new credit limit when the initial deposit has been made; and

marking the account as fulfilled after the savings account balance exceeds a predetermined value.

2. The method of claim 1 wherein the card request input also indicates that the customer has made a promise to make a deposit in a savings account to secure the credit card.

3. The method of claim 1 further comprising:

inhibiting reporting the issuance of the credit card to a credit bureau until the customer has either used the credit card, made a payment on the credit card, or has made the initial deposit.

4. The method of claim 1 further comprising:

reporting the issuance of the credit card to a credit bureau when the customer has either used the credit card, made a payment on the credit card, or has made the initial deposit.

5. The method of claim 1 further comprising:

passing the account from a tracking system to a secured credit card processing system when the account is fulfilled.

6. The method of claim 1 further comprising:

closing the account if no deposit is made in the savings account within a predetermined amount of time.

7. The method of claim 1 wherein the holder of the credit card and the holder of the savings account are the same entity.

8. The method of claim 1 further comprising:

entering an account number into an account number field in a database;

entering the initial credit limit into a credit limit field in the database; and

entering the new credit limit into the credit limit field.

9. The method of claim 1 further comprising generating a communication to the customer requesting an initial deposit.

10. The method of claim 9 wherein the step of generating a communication occurs after issuance of the credit card.

11. A computer-implemented method for issuing a credit card to a customer who has difficulty qualifying for unsecured credit or who requests a secured credit card, comprising:

receiving a card request input indicating that a customer has made a request for a credit card;

creating a credit card account with an initial credit limit for the customer in response to the card request input;

storing the initial credit limit by computer;

issuing a credit card to the customer before receipt of an indication of a deposit to a savings account to secure the credit card;

marking the account as unfulfilled when the credit card is issued;

periodically monitoring by computer a balance of the savings account for an initial deposit;

marking the account as fulfilled after the savings account balance exceeds a predetermined value; and

waiting until the customer has either used the credit card, made a payment on the credit card, or made the initial deposit to report the issuance of the credit card to a credit bureau.

12. A computer-implemented method for issuing a credit card to a customer who has difficulty qualifying for unsecured credit or who requests a secured credit card, comprising:

receiving a card request input indicating that a customer has made a request for a credit card;

creating a credit card account with an initial credit limit for the customer in response to the card request input;

storing the initial credit limit by computer;

issuing a credit card to the customer before receipt of an indication of a deposit to a savings account to secure the credit card;

marking the account as unfulfilled when the credit card is issued;

periodically monitoring by computer a balance of the savings account for an initial deposit;

marking the account as fulfilled after the savings account balance exceeds a predetermined value; and

closing the credit card account if no deposit is made in the savings account within a predetermined amount of time.