What everyone should know about credit reports and scores

Don't be overly concerned with your credit score. It can be a serious challenge to ever really "know" that number. That's because these scores vary based on when they are calculated (since they originate from a momentary snapshot of your credit report) and the scoring model itself. (There are many scores out there, including FICO, VantageScore, proprietary models and "educational" scores that aren't used by any lenders). Your credit score number can -- and does -- vary from day to day and lender to lender. As a result, at a given moment in time, it's extremely difficult to truly "know" your credit score with any certainty.    

So instead of placing emphasis on that score, focus on your credit reports. Those reports are the basis for lending decisions, regardless of the scoring model used. In some cases, they are even used for hiring decisions. Note that I said "credit reports" -- plural. That's because you've got a report with each of the three major credit bureaus (Equifax, Experian and TransUnion) that maintain a record of individual U.S. consumers' borrowing behavior. Unless lenders tell you, it's difficult to know what report they may be working with. Since the information listed in those bureaus' reports can differ, you need to look at each one for a complete picture of where you stand.

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