Children by and large do not have a credit report. A child can also not apply for credit in his or her name such as credit cards. How is it then possible for a child to have credit report?. Because the credit report can only be created for a person when the person applies for some form of credit or when a credit account is approved for the child, the one legitimate way for a child and a minor to have a credit report is when their parents signed them as an authorised user or a joint account holder on one of their credit cards or any other credit account.
Many parents include their children as authorised user on the credit cards so as to enable them to go shopping for things they from stores independently. Although this is something that should only be done after educating the child on proper use of credit and setting the limits of expenditure, it is something that many parents do to make things more convenient for themselves and the child. It is also something that builds a credit history for a child from an early stage which can be very advantageous for the child later on in life.
What also happens sometimes is that teenagers visiting a mall are often approached for retail cards and offers. They may fill out a form using their name along with false birthdates or their parent’s information just for fun and to see what happens next. This can also result in the creation of a credit report in the minor’s name.
Another unwanted manner in which the credit report can exist in your child’s name is identity theft and credit fraud.
Credit bureaus as a general rule do not allow a credit account to be opened in minor’s name. The credit bureau will also not knowingly reveal the credit report that belongs to a minor except to a parent or a legal guardian.