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    Consumerist Kit

    Your Good Name: Build Credit With Loans & CD's

    By Ben Popken, 8:21 AM on Wed Nov 8 2006, 2,002 views

    Here's a method from Wikihow on building up your credit and creating credit references.

    1. Purchase a certificate of deposit (CD) in 3 banks.
    2. Take out a loan from each bank for the amount of the CD. Secure the loan with the CD.
    3. Place the loan monies in an interest-bearing account, such as a high-yield savings account.
    4. Slowly pay down the loans each month.

    Does this method work? Are there possible pitfalls to watch out for?— BEN POPKEN

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