Is this the best way possible to establish the highest credit score?

Question

(I have 1 year of making my auto loan payments on time and no previous credit history.)

1) Go to my bank and take out a CD for $2,000 that pays interest.

2)Get a secured loan for $1,000 against the CD and pay it off in a year on time.

3)Take $500 to a different bank and establish a security deposit account to qualify for a secured credit card.

4) Repeat this once more at a third bank.

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

6) Pay the minimum payment on a bi-weekly basis by splitting the payment into half.

According to this FICO score estimator my resulting FICO score would be 735-785 in 1 year.

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

Answer 1

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Good Luck and Best Wishes!

Answer 2

The problem is that no one will give you a loan for $1000. And, does it make sense to you to have 2 secured credit cards with limit of $500 that isn't charged more than $45 per month?

Credit rating really is based on your credit history over a long period of time and the amount of transactions during that time. The estimation you used is just that an estimation.

The only way to increase your credit rating is to pay off your debts and not carry any balance. In addition, if you have purchase a car or a house, make the payments on time. Big purchases also raises your rating.