The use of a thin (Ni 0.81 Fe 0.19 ) 1 Cr seed layer for obtaining high anisotropic magnetoresistance in Permalloy (Ni 0.81 Fe 0.19 ) films is reported. The process yields a high 1 of, for example, 3.2% for 120-Å-thick NiFe, without high-temperature deposition or annealing. X-ray diffraction shows that the NiFeCr seed layer causes the formation of large (111) textured grains in the Permalloy film, and that the interface between these two layers is quite smooth. These both increase the 1 and reduce the resistance in the film, which lead to the high 1 . Also discussed is the enhanced 1 and thermal stability trilayer magnetoresistive sensors using this NiFeCr instead of Ta as a spacer.