When does your credit report first come on file?

Factual Questions
1

I recently decided it would be a good idea to open a Roth IRA and invest for the long term, so after much research, I decided on a particular mutual fund to select as my first investment as part of this IRA. After going through the application process, I elected to transfer funds electronically on a monthly basis, which requires and additional identity verification step. I eventually got to a screen asking for my driver’s license number , which would be compared with the number on file in my credit report (the additional identity verification step). Much to my dismay, however, I received an error reading

"We’re sorry, we were not able to verify you through the electronic identity verification system and as a result, we cannot establish your banking services online at this time. "

It still gives me the option of mailing them a check for my initial investment and my monthly investments as well, but that would be so much more inconvenient than doing an automated, electronic transfer.

Now, being that I’m only 19, is it possible that I don’t have a credit report yet, and, thus, it cannot be used to verify my identity? I’ve never really heard anyone talk about when your credit report first comes on file, per se.

Thanks for any feedback you can give.

2

Also, I should note that while I do have a credit card, it is a business credit card from my mother’s business with my name on it. In other words, it has my name on it, but right below it is the name of my mother’s company as well. This leads me to believe that the card is not owned by me, I am simply one of the cardholders of her business’s credit card account.

3

Your credit report will “come on file” when you establish credit in your own name. This can be in the form of a credit card issued to you (not your mom’s business), a car loan, a home mortgage, etc.

Since it’s usually difficult to get a car loan or home mortgage without having previous credit experience, your best bet is to apply for a credit card and make a few small purchases. Then be sure to pay off your balance each month when you get the bill.