Abstract: A method of assigning a credit limits to individual credit applicants. The method utilizes an algorithm to determine the profitability of a credit account and applies the algorithm to a plurality of credit accounts using a chi squared method to group the accounts into segments. An optimization process is performed on each segment to determine a credit limit that yields the maximum profitability of accounts in that segment. Credit applicants are then given the credit limit corresponding to the segment into which they fall. A shadow policy is used to selectively increase a credit applicant's credit limit.