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

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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