Scenario

You're advising a card issuer that needs to set an initial credit line for newly acquired customers who have limited credit history. The decision affects activation, spend, customer experience, and loss rates, and there is little direct data on how these customers will behave once booked. Leadership wants a clear way to balance growth and risk when the customer file is thin.

Question

How would you structure an analysis to determine the optimal credit limit for a newly acquired credit card customer with a limited credit history?