Identity Theft and Your Credit: How to Recover

Identity theft is one of the fastest ways to damage your credit — and one of the most frustrating to recover from. Here is a step-by-step guide.

Signs Your Identity Has Been Stolen

• Accounts on your credit report you did not open
• Hard inquiries from companies you never applied to
• Unexplained drops in your credit score
• Debt collection calls for accounts you do not recognize
• Bills or statements arriving for accounts you do not have

Immediate Steps to Take

Place a fraud alert. Contact any one of the three bureaus and request a fraud alert. They are required to notify the other two. This makes it harder for thieves to open new accounts in your name.

Consider a credit freeze. A credit freeze is stronger than a fraud alert — it completely locks your credit so no new accounts can be opened. It is free at all three bureaus.

File an FTC report. Go to identitytheft.gov and file a report. This creates an official record and gives you an Identity Theft Report which strengthens your dispute rights.

File a police report. Useful documentation for disputes with creditors.

Dispute all fraudulent accounts. Use your Identity Theft Report to dispute fraudulent accounts. Bureaus must block fraudulent information within 4 business days of receiving your report.

CreditGM helps identity theft victims dispute fraudulent accounts and rebuild their credit. Get your free analysis if you have been a victim.