System and method for providing extra lines of credit

• US 8,370,255 B2
• Filed: 07/02/2010
• Issued: 02/05/2013
• Est. Priority Date: 02/12/2001
• Status: Expired due to Term

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Lilly, Joseph D., Ruh, Colin Jeffrey, York, Jeff G., Walker, Philip G.
• Primary Examiner(s): Nguyen, Nga B.
• Application Number:
  US12/801,939
• Publication Number:
  US 20100274700A1
• Time in Patent Office: 949 Days
• Field of Search: 705/14, 705/35, 705/36, 705/38, 705/39, 705/40, 705/41, 705/42, 705/43, 705/44
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/0277 Online advertisement
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• 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 system and method for upgrading existing credit cards with additional lines of credit is disclosed. Credit information associated with customers holding credit cards issued by a credit card issuer are analyzed to determine a level of risk associated with each customer. One or more extra line of credit may be established for selected customers based on the determined level of risk associated with each customer. Each extra credit line may be exclusively associated with a selected set of vendors that have a partnership agreement with the credit card issuer. The credit card issuer may allow customers to select vendors to be associated with the extra credit line or may automatically choose vendors for selected customers. Customers with established extra credit lines may purchase goods and/or service directly from vendor sites or at the credit card issuer'"'"'s web sites. Purchases at selected vendor sites may be automatically applied to a customer'"'"'s newly established extra credit line. Additionally, a customer may choose to apply purchases to their extra credit lines or their primary line of credit.

Claims

1. A method, implemented using a computer, for providing at least one extra credit line to an existing credit card account, comprising:

determining, using the computer, a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

determining, using the computer, a target time to send an additional financial card product to each customer in the target customer group;

defining, by the computer, one or more attributes associated with the additional financial card product; and

sending, using the computer, the additional financial card product to each customer in the target customer group at the target time.

2. The method of claim 1, wherein the determination of the target time to send the additional financial card product to each customer in the target customer group includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

determining the target time based on the one or more purchases.

3. The method of claim 1, further including:

defining a first credit limit for the additional financial card product, wherein the first credit limit is based on a second credit limit associated with the primary financial card product.

4. The method of claim 1, wherein defining the one or more attributes further includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

defining the one or more attributes based on the one or more purchases.

5. The method of claim 1, wherein the one or more attributes includes at least one of an interest rate to apply against purchases made using the additional financial card product, a monthly minimum payment amount, one or more fees, a grace period, and one or more usage limitations.

6. The method of claim 5, wherein the one or more usage limitations includes at least one of an amount-based limitation, a proximity-based limitation, and a vendor-based limitation.

7. The method of claim 5, wherein the one or more fees includes at least one of an activation fee and a transaction fee.

8. The method of claim 1, wherein the primary financial card product is a credit card.

9. A non-transitory computer-readable medium including instructions for performing a method, when executed by a processor, for providing at least one extra credit line to an existing credit card account, the method comprising:

determining, using the computer, a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

determining, using the computer, a target time to send an additional financial card product to each customer in the target customer group;

defining, by the computer, one or more attributes associated with the additional financial card product; and

sending, using the computer, the additional financial card product to each customer in the target customer group at the target time.

10. The computer-readable medium of claim 9, wherein the determination of the target time to send the additional financial card product to each customer in the target customer group includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

determining the target time based on the one or more purchases.

11. The computer-readable medium of claim 9, further including:

defining a first credit limit for the additional financial card product, wherein the first credit limit is based on a second credit limit associated with the primary financial card product.

12. The computer-readable medium of claim 9, wherein defining the one or more attributes further includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

defining the one or more attributes based on the one or more purchases.

13. The computer-readable medium of claim 9, wherein the one or more attributes includes at least one of an interest rate to apply against purchases made using the additional financial card product, a monthly minimum payment amount, one or more fees, a grace period, and one or more usage limitations.

14. The computer-readable medium of claim 13, wherein the one or more usage limitations includes at least one of an amount-based limitation, a proximity-based limitation, and a vendor-based limitation.

15. The computer-readable medium of claim 13, wherein the one or more fees includes at least one of an activation fee and a transaction fee.

16. The computer-readable medium of claim 9, wherein the primary financial card product is a credit card.

17. A system for providing extra credit lines to credit cards with existing lines of credit, comprising:

a central processing unit;

a memory unit, communicatively connected to the central processing unit and containing instructions that are executed by the central processing unit to perform a method comprising;

determining a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

determining a target time to send an additional financial card product to each customer in the target customer group;

defining one or more attributes associated with the additional financial card product; and

sending the additional financial card product to each customer in the target customer group at the target time.

18. The system of claim 17, wherein the determination of the target time to send the additional financial card product to each customer in the target customer group includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

determining the target time based on the one or more purchases.

19. The system of claim 17, the method further including:

defining a first credit limit for the additional financial card product, wherein the first credit limit is based on a second credit limit associated with the primary financial card product.

20. The system of claim 17, wherein defining the one or more attributes further includes:

analyzing one or more purchases made by at least one customer in the target customer group; and

defining the one or more attributes based on the one or more purchases.

21. The system of claim 17, wherein the one or more attributes includes at least one of an interest rate to apply against purchases made using the additional financial card product, a monthly minimum payment amount, one or more fees, a grace period, and one or more usage limitations.

22. The system of claim 21, wherein the one or more usage limitations includes at least one of an amount-based limitation, a proximity-based limitation, and a vendor-based limitation.

23. The system of claim 21, wherein the one or more fees includes at least one of an activation fee and a transaction fee.

24. The system of claim 17, wherein the primary financial card product is a credit card.