Method of establishing a credit limit

• US 7,509,285 B1
• Filed: 08/31/2000
• Issued: 03/24/2009
• Est. Priority Date: 08/31/2000
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: David, Katherine Ella, Puri, Vivek, Budde, Shawn Michael, Maniar, Mayur Harshadray
• Primary Examiner(s): Fischer; Andrew J.
• Assistant Examiner(s): MCINTYRE, CHARLES AARON
• Application Number:
  US09/651,320
• Time in Patent Office: 3,127 Days
• Field of Search: 705/38, 705/44
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method is provided for offering and providing credit card products. The disclosed systems and method provide a credit card product whose credit limit is determined at the time of activation. The applicant receives a credit card that has not been activated. When the applicant contacts the issuer to activate the credit card and learn the credit limit, the actual credit limit for the credit card is determined based on the individual'"'"'s credit history and answers to risk-splitting questions. After determining the credit limit, a customer account is established and the customer is notified of the credit limit.

Claims

1. A method for providing a credit card product, comprising:

associating a financial account with an un-activated credit card that is provided to an applicant, wherein the associating is performed by a computer system configured to communicate with the applicant over a communication network;

analyzing, by the computer system, a first response to a first risk splitting question provided to the applicant;

generating, by the computer system, a second risk splitting question based on the first response for provision to the applicant, the second risk splitting question being configured to elicit additional information regarding subject matter associated with the first response;

determining, by the computer system, a credit limit for the financial account based on the first response and a second response by the applicant to the second risk splitting question; and

activating, by the computer system, the credit card with the credit limit.

2. The method according to claim 1, wherein associating the financial account includes:

generating, for the applicant, the financial account based on prior approval of the financial account based on credit bureau information.

3. The method according to claim 2, further including:

assigning a temporary credit limit for the financial account based on the credit bureau information.

4. The method according to claim 3, wherein the un-activated credit card is provided to the applicant without informing the applicant of the temporary credit limit.

5. The method according to claim 1, wherein analyzing the first response to the first risk splitting question further includes:

inviting the applicant to telephone an issuer to activate the credit card by telephone.

6. The method according to claim 5, wherein the method further comprises a live person posing the first and second risk-splitting questions to the applicant and translating the respective first and second responses into a standardized format.

7. The method according to claim 5, wherein the method further comprises a voice recognition unit posing the first and second risk-splitting questions to the applicant and requiring that the applicant respond in a standardized format.

8. The method according to claim 5, wherein the method further comprises a means for confirming the applicant'"'"'s responses to the first and second risk-splitting questions.

9. The method according to claim 1, wherein the determining the credit limit is based on credit bureau information associated with the applicant and the applicant'"'"'s first and second responses to the first and second risk-splitting questions.

10. The method according to claim 9, wherein determining the credit limit further includes:

determining the credit limit based on external data obtained from an entity that is remote from the computer system.

11. The method according to claim 1, wherein activating the credit card comprises cross-selling at least one other product based upon the applicant'"'"'s responses to at least one of the first and second risk-splitting questions.

12. The method according to claim 1, wherein generating the second risk splitting question based on the first response and a determination that a credit rating associated with the applicant meets a predetermined threshold value.

13. The method according to claim 1, wherein the first risk-splitting question comprises one of asking the applicant for the applicant'"'"'s gross annual income, asking the applicant if the applicant has a car, asking the applicant if the applicant has a checking account, asking the applicant if the applicant owns a residence, asking the applicant for the applicant'"'"'s monthly housing or rent payment, asking the applicant if the applicant has a car loan, or asking the applicant how many credit cards the applicant has.

14. A system for providing a credit card product, said system comprising:

means for generating a financial account associated with an un-activated credit card that is provided to an applicant;

means for analyzing a first response to a first risk splitting question provided to the applicant;

means for generating a second risk splitting question based on the first response for provision to the applicant, the second risk splitting question being configured to elicit additional information regarding subject matter associated with the first response;

means for determining a credit limit for the financial account based on the first response and a second response by the applicant to the second risk splitting question; and

means for activating the credit card with the credit limit.

15. The system according to claim 14, further comprising:

means for receiving the first and second response from the applicant via the Internet; and

means for activating the credit card via the Internet.

16. The system according to claim 15, further comprising means for assigning a temporary credit limit for the financial account based on credit bureau information.

17. The system according to claim 16, further comprising means for confirming the applicant'"'"'s answers to the risk-splitting questions.

18. The system according to claim 17, wherein the means for determining a credit limit includes means for analyzing credit bureau information and the first and second responses to determine the credit limit.

19. The system according to claim 14, wherein the means for generating the second risk splitting question generates the second risk splitting question based on the first response and a determination that a credit rating associated with the applicant meets a predetermined threshold value.

20. The system according to claim 14, wherein the first risk-splitting question comprises one of asking the applicant for the applicant'"'"'s gross annual income, asking the applicant if the applicant has a car, asking the applicant if the applicant has a checking account, asking the applicant if the applicant owns a residence, asking the applicant for the applicant'"'"'s monthly housing or rent payment, asking the applicant if the applicant has a car loan, or asking the applicant how many credit cards the applicant has.

21. A computer program product for providing a credit card product, the computer program product comprising computer-readable media having computer-readable code, the computer program product comprising the following computer-readable program code for effecting actions in a computing platform;

program code for identifying an applicant based upon a response to at least a first risk-splitting question;

program code for selecting a second risk-splitting question based on the response to the first risk-splitting question, wherein the second risk-splitting question is configured to elicit detailed information regarding subject matter associated with the first risk-splitting question;

program code for incorporating credit bureau information into a calculation of a credit limit; and

program code for calculating an increase to the credit limit based upon (a) at least one of the response to first risk-splitting question and a second response to the second risk-splitting question and (b) the credit bureau information.

22. The computer program product according to claim 21, wherein the program code for calculating an increase to the credit bureau credit limit comprises program code for incorporating external data.

23. The computer program product according to claim 21, wherein the program code for selecting the second risk-splitting question is further configured to determine that the applicant'"'"'s credit rating exceeds a threshold value before selecting the second risk-splitting question.

24. The computer program product according to claim 21, wherein the first risk-splitting question comprises one of asking the applicant for the applicant'"'"'s gross annual income, asking the applicant if the applicant has a car, asking the applicant if the applicant has a checking account, asking the applicant if the applicant owns a residence, asking the applicant for the applicant'"'"'s monthly housing or rent payment, asking the applicant if the applicant has a car loan, or asking the applicant how many credit cards the applicant has.

25. A computer program product for providing a credit card product, the computer program product comprising computer-readable media having computer-readable code, the computer program product comprising the following computer-readable program code for effecting actions in a computing platform;

program code for identifying an applicant for a credit card based upon a first response to at least a first risk-splitting question;

program code for selecting a second risk-splitting question based on the answer to the first risk-splitting question, wherein the second risk-splitting question is configured to elicit detailed information regarding subject matter associated with the first risk-splitting question;

program code for determining a credit limit associated with the credit card based on credit bureau information; and

program code for calculating a decrease to the credit limit based upon (a) the first response to the first risk-splitting question and a second response to the second risk-splitting question and (b) the credit bureau information.

26. The computer program product according to claim 25, wherein the program code for calculating the decrease to the credit limit further includes program code for calculating the credit limit decrease based on external data obtained from an entity that is remote from the computer system.

27. The computer program product according to claim 25, wherein the program code for selecting the second risk-splitting question is further configured to determine that the applicant'"'"'s credit rating exceeds a threshold value before selecting the second risk-splitting question.

28. The computer program product according to claim 25, wherein the first risk-splitting question comprises one of asking the applicant for the applicant'"'"'s gross annual income, asking the applicant if the applicant has a car, asking the applicant if the applicant has a checking account, asking the applicant if the applicant owns a residence, asking the applicant for the applicant'"'"'s monthly housing or rent payment, asking the applicant if the applicant has a car loan, or asking the applicant how many credit cards the applicant has.

29. A method for providing a credit card product, said method comprising:

associating a financial account with an activated credit card that is provided to an applicant, wherein the associating is performed by a computer system configured to communicate with the applicant over a communication network;

generating, by the computer system, a first risk splitting question for provision to the applicant;

analyzing, by the computer system, a first response to the first risk splitting question;

generating, by the computer system, a second risk splitting question based on the first response for provision to the applicant, the second risk splitting question being configured to elicit detailed information regarding subject matter associated with the first response;

determining, by the computer system, a credit limit for the financial account based on the first response and a second response by the applicant to the second risk splitting question; and

increasing the credit limit.

30. The method according to claim 29, wherein associating the financial account includes:

generating, for the applicant, the financial account based on prior approval of the financial account based on credit bureau information.

31. The method according to claim 30, wherein the activated credit card is provided to the applicant without informing the applicant of a temporary credit limit.

32. The method according to claim 31, wherein generating the first risk splitting question includes generating information reflecting an invitation to the applicant to activate contact a credit card issuer by telephone.

33. The method according to claim 30, wherein generating the first and second risk splitting questions includes:

translating voice data reflecting the risk splitting questions provided by a person into a standardized format.

34. The method according to claim 30, wherein the first and second risk splitting questions are provided to the applicant through a voice recognition unit and the method further includes:

receiving the first and second responses in a standardized format.

35. The method according to claim 30, wherein said method further comprises:

confirming the first and second responses to the first and second risk-splitting questions.

36. The method according to claim 29, wherein determining the credit limit includes:

determining the credit limit based on credit bureau information and the first and second responses.

37. The method according to claim 29, wherein determining the credit limit further includes:

determining the credit limit based on external data obtained from an entity that is remote from the computer system.

38. The method according to claim 29, wherein generating the second risk splitting question based on the first response and a determination that a credit rating associated with the applicant meets a predetermined threshold value.

39. The method according to claim 29, wherein the first risk-splitting question comprises one of asking the applicant for the applicant'"'"'s gross annual income, asking the applicant if the applicant has a car, asking the applicant if the applicant has a checking account, asking the applicant if the applicant owns a residence, asking the applicant for the applicant'"'"'s monthly housing or rent payment, asking the applicant if the applicant has a car loan, or asking the applicant how many credit cards the applicant has.