secured loan to increase credit?

[Anonymous]

I have read a few post where some have contacted their bank ...put up for example 1000.00 for a loan to build credit history.   I' m not sure of the details on how it works.  My DH does not have but 3 accounts and am wondering if this would help him with having different types of credit.

Does anyone have any exp. with this?

[llecs]

There are several stories in here of folks paying off their installment loans and getting a hit on their scores. Others have posted score bumps when getting a new loan.

I talked with my bank a couple months ago about this. They offered to open a loan of $2000 if I open a $2000 CD as security for the loan. They also offered a rate of 6% for the loan, which was a little higher than the CD rate. The term would have been for 1 or 2 years. IMO, it didn't make sense to lose money just to bump my score up. I might reconsider once our car loan gets paid off early next year.