Do you know what's lurking inside of your credit report?

Half of Canadians don't know what contributes to their credit rating, a new survey has found

Unlike most of her friends, Nanaimo's Jesslyn Gosling is holding off on getting a credit card.

"I don't manage my money very well," admits the 22-year-old.

"If I don't have a credit card then I won't spend."

In today's credit-hungry society, where many people are packing their wallets with two or more credit cards, Gosling may be somewhat of an anomaly. But she won't be for long.

Gosling plans on applying for one "pretty soon" to build up her credit history.

That may mean easier buying power but Gosling and her friend Emma Maddock acknowledge they don't know exactly what goes into credit records after they swipe the almighty credit card.

They're not alone.

A recent Financial Consumer Agency Survey revealed that half of Canadians are unaware of the factors that contribute to an individual's credit rating, and only 15% have requested a credit report.

A credit score is a numerical rating based on the contents of a credit report.

To Julie Jaggernath, of the Credit Counselling Society, it's a "snapshot" of a person's debt history and more important today than ever before.

"It affects everything," she said, noting everything from mortgages, car loans to being able to rent an apartment are dependent on a person's credit history.

Some employers will even run a credit check on applicants to see how they manage money.

"It goes to character," Jaggernath explained.

In Nanaimo, credit counsellor Kyle Peters says he's often surprised at how little people know about managing debt and how it affects credit scores.

"I think that there's just so many factors that influence your credit rating," he said. "People don't really realize what factors are more influential over others. It's not really clear to the public."

A credit score is a number between 300 and 900.

"Bigger is better," said Jaggernath. "If your number is 700, that means 700 out of 900 people are likely to pay their debt.

"Most lenders don't like to see anything under 680."

The Financial Consumer Agency says the credit report is the first place to look for signs of identity theft.

Bad credit doesn't come from being a couple of days overdue on a payment, though paying on time is the best way to keep a good credit

rating.

"You usually have to miss an entire billing cycle before it hits," Jaggernath said.

Having too much credit raises a red flag to lenders as well, she said.

Since cell phone companies report overdue payments to credit bureaus, teens can fall into bad credit early on.

"With a 19-year-old, it's the fastest way to build credit and the fastest way to wreck it if you don't pay your bill."

The good news for credit holders is everyone's slate is wiped clean after six years.

"If people focus on not having too much credit, using it responsibly and paying it in full and not carrying balances all the time, chances are their credit is going to be OK," Jaggernath said.

MTropea@nanaimodailynews.com

250-729-4255

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Seek help if you:

- Have no spending plan or budget in place

- Use credit to pay for most purchases

- Use credit to pay for credit

- Spend more than your income

- Don't pay your bills on time

- Have little or no savings

- Receive letters or phone calls from collectors

- Withhold spending information from your partner