Discovering that you’ve become a victim of identity theft can be overwhelming and stressful—especially when it damages your financial reputation. The good news is that it’s possible to recover from identity theft and take concrete steps to repair your credit. In this guide, we’ll walk you through the process step-by-step so you can regain control of your finances and protect yourself in the future.
1. Report the Identity Theft Immediately
Your first move should be to report the theft as soon as possible. Acting quickly can help prevent further damage.
- Contact the Federal Trade Commission (FTC): Visit IdentityTheft.gov to report the theft and receive a personalized recovery plan.
- File a police report: Bring a government-issued ID, proof of the theft (credit card statements, debt collection letters, etc.), and your FTC Identity Theft Report when filing with your local police.
2. Place Fraud Alerts and Credit Freezes
Guard your credit by alerting credit bureaus and taking steps to restrict unauthorized access.
- Fraud alert: Place a fraud alert on your credit files by contacting one of the three major credit bureaus—Equifax, Experian, or TransUnion. They are required to notify the other two.
- Credit freeze: Consider placing a credit freeze on your reports with each bureau. This prevents new creditors from accessing your credit file (and opening new accounts) until you lift the freeze.
3. Review and Dispute Errors on Your Credit Report
Check all three of your credit reports for unfamiliar activity or accounts that you didn’t open.
- Obtain free credit reports: Go to AnnualCreditReport.com to get reports from Equifax, Experian, and TransUnion.
- Dispute unauthorized accounts: Contact each bureau to dispute inaccurate information. Include supporting documentation like your police report and FTC Identity Theft Report.
4. Contact Affected Companies and Close Fraudulent Accounts
Get in touch with businesses where fraud occurred to notify them and prevent further charges.
- Speak with fraud departments: Call the company where unauthorized activity took place. Request account closure or changes to secure access.
- Get confirmation in writing: Request written verification that accounts have been closed and marked as fraudulent.
5. Monitor Your Accounts and Credit Going Forward
After taking recovery steps, it’s important to stay vigilant to avoid future problems.
- Set up account alerts: Enable email or text alerts for withdrawals, charges, and changes on your financial accounts.
- Use a credit monitoring service: Subscription or free services can track your credit activity and alert you of changes.
- Regularly check your credit report: You can access your reports for free through AnnualCreditReport.com every 12 months—or more frequently if you’ve been a victim of fraud.
6. Rebuild Your Credit
Once the damage has been contained, focus on rebuilding your credit profile.
- Pay bills on time: Payment history makes up a significant portion of your credit score. Set reminders or automate payments to stay on track.
- Reduce high balances: Aim to keep your credit utilization below 30% of your available credit.
- Consider a secured credit card: These cards can help you rebuild credit when used responsibly.
Final Thoughts
Recovering from identity theft takes time, patience, and diligence—but it can be done. By taking immediate action and being proactive about your financial health, you can limit the damage and put yourself on the path to repairing your credit. Don’t get discouraged—stay informed, stay protected, and know that you’re not alone on the road to recovery.