How to Rebuild Your Credit After Identity Theft

The most important answer to the question “How do I fix my credit after identity theft?” is to take action immediately. The sooner you recognize unauthorized charges on your credit report and report them to companies that are reporting them, the sooner you can begin to rebuild your credit.

Secure Your Identity Immediately

Identity theft-related crime has skyrocketed during the pandemic, and it’s crucial to act quickly to protect your finances. The first step is to secure your identity by:

Contacting your identity theft protection provider (if you have one) to report the theft and get guidance on the next steps.
Requesting your free credit reports from the three major bureaus (Equifax, Experian, and TransUnion) to identify any fraudulent activity.
Contacting the lenders that have fraudulent charges or accounts in your name to dispute the charges and close the accounts.
Adding a password or “Notice of Correction” to your credit report to prevent further unauthorized access.
Applying for protective registration with CIFAS, the UK’s Fraud Prevention Service, to have extra checks placed on your credit applications.
Updating the passwords for all affected accounts and closing any unauthorized ones.
Considering identity theft insurance to cover the costs of restoring your identity and repairing your credit.

Dispute Fraudulent Activity and Rebuild Your Credit

Once you’ve secured your identity, the next step is to dispute any fraudulent activity on your credit report and start rebuilding your credit. This includes:

Formally disputing any inaccurate information or fraudulent accounts with the credit bureaus and individual creditors, providing copies of your police report and FTC affidavit as proof.
Paying down overall credit balances to improve your credit utilization ratio and boost your credit score over time.
Monitoring your credit reports regularly to ensure no new fraudulent activity appears and that the disputed items have been removed.
Considering a credit freeze to prevent new accounts from being opened in your name, if the identity theft was severe.
Continuing to be vigilant and persistent in your efforts to restore your credit, as the process can take time and effort.