A person is assigned a credit report if he takes out a line of credit or a loan with a lender or incurs an unpaid debt that is reported to a credit reporting agency. Generally, anyone who has any credit history has a credit report assigned to him. If a person signs for a credit card, he has a credit report, because he is taking out a line of credit from the company.
Taking Out a Credit Card
A person who takes out a credit card can be defined as the person who signs the contract with the credit card company that issued him the card. The person agrees to the terms of the card and agrees to pay back whatever purchases are made against the line of credit. However, the person can add names to the card, and these people also are authorized to use the card.
Name on Card
While a credit card generally has only a single signer, a single account may have several names on it. Cards may be issued for all these people, and all these people will have their credit histories affected by how the card is used, because all of them are attached to the card. If the credit card balances are paid late or not at all, all their credit scores will suffer.
Credit Reports
A credit report is issued to any individual who has taken out a line of credit. If a person signs for a credit card, the credit card company reports this line of credit to the three credit reporting agencies -- Equifax, Experian and TransUnion. If the person does not already have a credit report, one will be created for him. This credit report remains on the credit reporting agency's books until he dies, although positive and negative information on the report is erased after a certain period of time.
Considerations
The person whose name is on a credit card also is affected by the use of the card. A person at a young age can have a credit card. However, he may not be old enough to legally sign a contract. This can occur if a parent or other legal guardian takes out a credit card for him, allowing him to get an early start on building a credit history.
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