Is this the fastest and best way possible to establish credit?

Question

(I have 1 year of making my auto loan payments on time.)

1) I plan to take out a $500 secured personal loan from my bank for 6 months.

2) Then go to a different bank with the $500 and take out another secured personal loan from that bank for 6 months.

3) Repeat this once more at a third bank.

4) Establish a $300 security deposit account at my original bank to qualify for a secured credit card.

5) Repeat the process of getting a secured credit card at the next bank.

6) Repeat this once more at the third bank.

7) Obtain 2 more credit cards.

8) Pay back $500 secured personal loans from my banks in 6 months making all payments on time.

9) Use all 5 credit cards but never charge more than a maximum balance of 9% of the total credit card limit.

10) Pay off the statements as soon as they come and make all payments on time.

According to this FICO score estimator my resulting FICO score would be 740-790 in 1 year.

http://www.bankrate.com/brm/fico/calc.asp

Answer 1

That doesn't sound right, first of all, each time you apply for credit it drags down your score and you may not even get approved for the last few loans your looking for if they see you're opening alot of accounts in a short period of time. It's not about borrowing a ton of money, it's about managing your debt and managing various types of debt, for a breakdown of how your fico score is calcuated check out http://creditwisdom.blogspot.com/2006/09/fico-breakdown-how-your-credit-score.html

Answer 2

NOooooo!!!!!!!! how you could convey your score up is to decreased debt, no longer create. Your score is likewise depending upon what else is on your record. If the in elementary words challenge on your record is your automobile note.....likely %. up a million (in simple terms a million) mastercard... and be particular you sometimes keep your stability lower than 1/2 or the credit reduce. I pulled my score from a 540 to a 680 in a million twelve months. I nevertheless have 2 adverse products from years previous...even as those come off, i visit have about a 720

Answer 3

I think your making this more complicated than it is. Just take out a one year loan and pay it off. Don't miss any payments and you'll have good credit.

Answer 4

Get a credit card and buy something for $5.00/month (or whatever dollar amount you want) then pay it off immediately. You'd be surprised what that will do to your credit. Good luck!