Do you know what's lurking inside-2

"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

- --

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