• US residents filed nearly 200,000 complaints within a year to have errors removed from their credit reports

• Two thirds of complaints are related to reports containing information belonging to someone else

• Minnesota has the best credit score in the US, Mississippi - the lowest, while Georgia complains the most to fix their credit reports

• West Virginia, New Mexico, Kentucky, Oklahoma and Indiana have the biggest room for improvement of their credit score

• The state with the lowest rate of complaints is West Virginia, where only 52 complaints have been registered per 100,000 residents 

US residents filed 197,709 credit report complaints with the Consumer Financial Protection Bureau between September 2021 and September 2022. A new study has found that as much as two in three problems that US residents complain about are related to their report containing information that simply does not belong to them.  

Of all the US states with below average credit scores, West Virginia residents file the least complaints about their credit reports. This is despite the Federal Trade Commission estimating that around one in four credit reports contain errors. Other states missing out on improving their credit scores include New Mexico, Kentucky, Oklahoma and Indiana.

This is according to a study from consumer protection attorneys FCRA by Fair Credit, who analyzed data from the Consumer Financial Protection Bureau and Experian from September 2021 to September 2022. It discovered that 131,989 of the total 197,709 credit report complaints concern specifically information that belongs to someone else.

Top states with the biggest room for improvement

The study found that 18 US states have credit scores below the national average of 714. Among them, the ones that complain the least about errors in their credit reports are West Virginia, New Mexico, Kentucky, Oklahoma and Indiana. Residents of these five states have the biggest potential to improve their credit scores and catch up with the US average. 

West Virginia has an average credit score of 700 - 14 points below the national average. For every 100,000 residents of West Virginia, there are only 52 complaints to correct credit reports mistakes. In New Mexico, this number stands at 68, with the state averaging to a credit score of 699. Kentucky only has 73 complaints filed for every 100,000 residents, with the state’s average score stagnating at 702 over the past two years.

Oklahoma is the fifth worst state for average credit scores, estimated at 693, yet for every 100,000 residents, there are only 92 complaints to fix the likely errors in their credit reports. Lastly, Indiana, which is 2 points short of the national credit score average, still only sees 102 complaints filed per 100,000 residents to address the problems in their reports. 

Overall, Mississippi has the worst credit score in the US - 680, with only 241 complaints per 100,000 residents to have mistakes in their credit reports removed. Meanwhile, Minnesota prides itself on having the best credit score in the country (742), whereas Georgia is the state that files the most complaints to have their credit reports corrected (499 per 100,000 residents).

Issues people most complain about 

The prevailing issue people complain about in relation to their credit scores in West Virginia, New Mexico and Kentucky is about someone else’s data being misattributed to the account holder. This is the case for 66.7% of US states, where 131,989 complaints out of the total of 197,709 between September 2021 and 2022 concern specifically information that belongs to someone else.

In Oklahoma, however, there is a pattern of reports being used improperly. The majority of the cases are resolved following a formal complaint.

Meanwhile, Indiana residents are facing three main issues. Besides dealing with incorrect information on their reports and their improper use, the investigations of credit reporting companies into existing problems largely end up unresolved. 

A spokesperson for FCRA.com commented on the findings: “When discovering they have a low credit score, many people assume they need to make drastic changes to their financial habits. However, in every fourth case, at least, it is entirely not their fault and is simply a matter of correcting one’s credit report. 

“We were very surprised to learn that very few people are aware, firstly, that there is a 25% chance that a low credit score is not their fault and, secondly, that this can be easily fixed by taking legal action. Errors in your credit report, background check or tenant screening can lead to unfair interest rates, higher rent and even cost you your job or your dream home. Checking your credit score is currently free via the official website – annualcreditreport.com – and can save you a great deal of grief when you need that three-digit number to be in top shape.” 

The study was commissioned by FCRA by Fair Credit – a law firm that specializes in correcting errors in credit reports, background checks and tenant screenings.