Do you know your score? When you're looking for a loan do you know how well you'll score with lenders before setting foot in a bank?

If you're like many Canadians, chances are you've never requested a credit report or seen your credit score. In a recent survey, the Financial Consumer Agency of Canada found that only 15 percent of Canadians have requested a credit report, while only 24 percent know their credit rating. Startling numbers when you consider the vital importance of this information to your financial health. Here's a quick guide to your credit report and credit score.

A credit report is a "snapshot" or profile of your credit history. It shows how often you pay your financial obligations, if you miss credit card payments, or if you've gone over your credit limit. Your credit report contains these details about you:

• Personal: Your name, current and previous address(es), Social Insurance Number (SIN), current and past employer(s), date of birth.
• Credit: Any credit you have -- such as a credit card, line of credit, a loan, or a mortgage.
• Banking: Any accounts you have, history of non-sufficient funds (NSF).
• And more: Any bankruptcies, collection agency interactions, or credit report inquiries made by yourself or a lender.

A credit report is created when you first borrow money or apply for any form of credit. Over time, your banks, credit unions, and retailers send updates to credit reporting agencies about your payment habits. This information is documented in your credit report and can be made available to lenders, landlords, and employers when you're applying for credit, housing, or a job.

Your credit score is a number between 300 and 900. Higher numbers show you're very credit worthy while lower numbers indicate a credit risk to lenders. Most Canadians don't know their credit scores, but finding out this information can help you significantly. If you have a high score, you can use it to negotiate lower interest rates on loans. On the other hand, finding out you have a low score gives you the opportunity to improve it before dealing with lenders.

Check out this handy Loan Calculator so see how higher interest rates can cost you!

So what's a good credit score? The majority of Canadians score between 700 and 850 which is considered to be a very good credit risk.

It's a good idea to request a copy of your credit report once a year to verify the correctness of your personal and financial information. Checking your credit report can also help protect you against identify fraud since you'll see any unusual credit activity on your report.

In Canada there are two major credit reporting agencies, they are: Equifax (www.equifax.ca) and TransUnion (www.transunion.ca). Both agencies will mail you your credit report for free, or you can request to see it online for a fee. Obtaining your credit score from either agency costs around $25 and must be done online. Doing this also gives you access to your credit report.

Your Turn: Have you ever checked your credit report or found out your credit score? Were you surprised?