This is a simple way to create your own graph paper, in any size or color that you want it. I’ve found, that for a background, it’s generally good to use pale colors so that they don’t obscure the type, printing, or doodles on top of them of them.
If you’ll be creating this for a 3by5 card, select File > New, and enter a Width of 5 inches a Height of 3 inches, and set the Resolution to 200 pixels/inch. (You can, of course, use this method for anything from a web page to a full sheet of paper to a billboard).
Next, create another new file, by selecting File > New, and enter a Width of .3 inches, a Height of .3 inches, and the Resolution to 200 pixels/inch. This is the file that will contain the grid pattern you will create.
Next, click the foreground color in the Toolbox, and select a pale color for your gridlines. I’ve selected a pale blue gray, hexcode #C5D1eA. Select the Pencil tool, and set the brush size to 1 pixel.
Draw a straight horizontal line by shift+clicking the pencil in the grid file. Draw a vertical line by shift+clicking with the pencil tool again. It doesn’t matter where the lines intersect, just make sure that the lines go completely from side to side and top to bottom.
You’ve just created the grid background! To apply this as a repeating background, select Edit > Define Pattern, and enter a name for the pattern.
To fill the image with this background, select the 3 by 5 image you created in the first step. Next, select Edit > Fill > Pattern, then browse to the grid background you’ve just added. Click OK and the background pattern will fill the 3by5 card.

The background of your index card will fill with the pattern you’ve selected.

This gridded background can be used in a number of ways, such as filling the background for writing paper, or creating a guideline in a piece of artwork. If you’re using the background as part of a collage, or as guidelines in your art, you would want to put the background on it’s own layer.
Altering the colors and size of the background can give a wonderful variety of effects.
You can also alter the size and colors of the background in many ways to achieve different effects. You can add the grid to a gradient or textured background, or place it over a photo.

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