Replicating the Self lender model

I just wrote about the Self Visa and how ingenious it is.  I realized that there is a way to replicate this and at a lower cost.  Here is how:

1. Join a local credit union.  This usually can be done for $25.  All you need is a savings account, although you can get a free checking account too if you need it.
2. Save up at least $1000 in the savings account. $1500 or $2000 is better.  (Yea, you can use a secured credit card with a $200 balance instead, but that is a different strategy).
3.  Get a shared secured loan for $1000 or what you saved.  Even with bad credit, you can probably get a loan for 12% or less, because it is secured.
4.  With the proceeds of the loan, make a deposit and get a secured credit card.
5. Make sure to make the payments on time. Boom, same results, the only difference is that you save the money up front.