How can you repair a credit score damaged by identity theft?

On Behalf of | May 5, 2023 | Identity Theft

Identity theft is a major concern in an increasingly digital world. Once someone’s personal identifying information falls into the hands of those with ill intentions, there could be numerous serious issues that arise. Identity theft often leads to fraudulent debt and other problems that can drag down someone’s credit score.

Reviewing and repairing one’s credit report after an identity theft incident is a very important part of the recovery process. Those with previously pristine credit reports and scores of over 800 could lose hundreds of points and have numerous incorrect blemishes on their credit report limiting their access to credit and possibly also affecting their career opportunities, as employers often perform credit checks when hiring or promoting people.

How can someone go about fixing their credit report after identity theft complicates their situation?

They notify the authorities

People often think of identity theft as an unsolvable crime and may not bother reporting it to local law enforcement authorities. The process of reporting identity theft to the relevant authorities is important for the recovery process. The origins and scope of the identity theft will determine what authorities should receive notice of the incident.

They communicate with lenders and credit bureaus

Someone who experiences identity theft will typically need to send formal notice to both lenders that have actually provided financing to an individual who experiences identity theft and those involved in the fraud, possibly as secondary victims.

They can effectively freeze accounts that should not exist and notify those lenders of any pending investigation. They can also potentially preserve the right to continue using other accounts that might close because of the sudden dropping their credit score. Additionally, sending official notice to the credit bureaus to flag someone’s credit report after an identity theft incident can prevent the continued misuse of someone’s personal identifying information.

They challenge inappropriate information

After proper follow-up to an identity fraud incident, the individuals affected can begin correcting their credit reports. The credit bureaus will remove inaccurate information, including accounts opened fraudulently. It may be a lengthy process that requires rechecking repeatedly, but someone can remove all of the inaccurate information that accrued on their credit report because of the identity fraud that they experienced.

Properly responding to identity fraud is complex and time-consuming, and people often require legal guidance and support throughout the process. Thankfully, there are systems in place to help people rebuild after experiencing this potentially devastating form of crime. Having access to informed guidance can make it easier to resolve issues stemming from an identity theft incident.

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