Perhaps
the most important decision consumer lenders make with
their revolving products is the amount of credit to
extend. Many lenders assign credit limits based solely
on risk - with lower risk customers receiving higher
amounts of credit.
PMA's approach to determining the appropriate credit
limit for a customer strikes a balance between the revenues
produced from customers who use their credit limit and
the losses generated from those who default. If credit
limits are set too low, revenues will be constrained.
If credit limits are set too high, credit losses are
aggravated. Our statisticians work with your historical
data to optimize the credit limit decision for your
business - at the point of underwriting and throughout
the life of an account.
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