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A credit report develops over a period of  time, as a person uses credit for making payments. Even if you have never used credit, a credit report with your name may exist at one of  the major credit bureaus - Equifax, Experian or Transunion. This may be due to identity theft or error made by the credit bureau. However, this can be rectified by following the specified procedure.

The following steps will help you build credit:

1. Open  checking and savings accounts at an early age - this is allowed by most banks, some may also have special schemes for children. Usually a joint account with a guardian has to be opened.  Most lenders interpret this as a sign of stability.

2. You can get added to a credit card as a joint or authorized user or sign up for a loan with another person. If the other person has a good credit history, this will also reflect on your credit history in a positive manner. How not all credit card issuers report details  of  the joint user of the credit card to the credit bureaus.

3. Understand how credit scores are calculated. The most important factors considered are punctuality while paying bills and how much of your available credit is used. To avoid delays in payment of  bills, you can set up automatic bill payments through your bank. Use only 30% of  the credit available , while making purchases with your credit card.

4. Apply for a credit card why studying in college, more companies are willing to issue cards to students, since parents fund the students expenses. The card should have a low or no annual fee, and use it to make small purchases only, so that you can make prompt payments. Select a credit card which is  reported to all major credit bureaus.

5. Get only one or two credit cards, if  you have many credit cards, it will reflect badly on your credit rating. Also use credit regularly, but only for small amounts, so that it is reflected in your credit records.