Would this work to get AAA + credit rating?

Question

OK of course YOUR working   so U have $1000 cash go open a savings acct at new bank  when funds clear  go ask for a loan  of $1000 using that $1000 as collateral 

take that $1000  and go repeat process at a 2nd new bank 

then take that 2nd $1000  and go to 3rd new bank  

OK you now have your original $1000  back in hand YOU use your own checking account and start paying off the other 3 loans with that in 90 days  you have them all paid off and when done close out all 3 accounts YOU get back the $3000 and YOU only paid the interest money proabaly 7 %  so you only spent $210  

I think i'm right  here ! What do U think will this work ?

Go with the flow · Accepted Answer

You should work in Wall Street.
Please go to college and study finance - it will get much more interesting that what you are simply thinking right now.

You are right.  Couple of flaws:
Interest rates are now paying about 1%.
You will give your credit rating a ding - too many new loans
Each one reduces the score for 6 months.
By paying off a loan before 6 months it will not benefit your rating since you need to maintain a loan for at least 6 months for a rating benefit to your credit.
Your credit will not improve.

Also note, that it is also only one tiny loan you need to improve your rating.
A large amount could increase your debt ratio too high and make you a credit risk.

Please go to school and study finance - you'll love it.
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Would this work to get AAA + credit rating?

1 Answer