You are the Director of Credit Products (Credit cards, lines of credit, etc.) at

Question

You are the Director of Credit Products (Credit cards, lines of credit, etc.) at a large bank. You have access to all of the credit reports (and all the data contained therein) in the U.S. You have access to all of the web surfing history (history for the last 180 days) of all in the U.S. You have access to all credit card purchase history from 2 of the largest banks in the U.S. The Black card provides automatic credit for up to $150,000; for example, your ‘Black Card’ holder could go to a car dealership and purchase a car that cost $45,000 with that card. What data mining would you do, if your CEO asked you to develop a list of potential customers to send pre-approved letters for your new ‘Black Card’?

Explanation / Answer

Answer)

So, Black Card is a new Card that we want to sell to potential customer on a pre-approval basis. The Black Card provides automatic credit of 150000 and customers could use that amount anywhere. So that is a expensive credit card that not everybody can afford and only potential customers with such background can be offered that card.

To offer the Black Card to potential customers, We first have to ascertain the credit score and the credit reports of the customer. We should send only to those customers who have a good credit score and a good credit report.

Secondly, we have to ascertain that the customer has how many credit cards, whether he has been settling the bills of the credit cards in time, the purchase history will determine the buying habits of the customer, of what amount and how expensive does the customer buy with the credit card.

Thirdly, the credit card possessed by the customer is of how much value and is the person eligible for the Black Card? Does the person has such balance so that after purchasing with the credit card, he will be able to settle the amount with the card? The person has to have some worth for possessing such a credit card of high value. We will have to check whether the customer will be able to settle the bills after using the credit card and that the company will have sufficient guarantees.

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