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File a police report immediately for identity theft. Then call the credit bureaus (Equifax, TransUnion, Experian), dispute the account and have your credit flagged.
No, you can not give credit that you have to someone else. You can loan someone money or your credit card, but you are still responsible for paying the credit card company back.
If someone wanted to improve their credit rating there are a variety of places where someone can do so. Some of these ways are for the individual to check their credit files.
Someone with bad credit can apply for mortgages through the FHA program. These mortgages are backed up by the FHA and are a good choice for someone who has bad credit.