Increase Credit Card Limit

[Ujjawal]

I am working on a business problem that focuses on targeting credit card customers whom bank should increase credit card limit.  Has anyone worked on the similar model? What kind of techniques and data sets can be used for building this model? Can we predict credit card utilization to make it closer to the objective?

[SASKiwi · Accepted solution]

What is your objective? To identify those who would be eligible for a limit increase or to optimise the response rate from customers? Is this an opt-in or opt-out offer to customers?

If you are just identifying those who would be eligible for a limit increase then this is not a data mining exercise, more the application of a series of business rules which include or exclude customers.

If you are trying to optimise the customer response rate, assuming they have to opt-in to get the increase, then that would be a data mining exercise.

[Reeza]

Do you have a set of data where you've offered credit increases, some have taken up, others have not and the corresponding usage of those who have?