How to Rebuild Credit After Identity Theft

A person checking their credit report on a laptop after identity theft, working to restore their credit score.

Imagine logging into your bank account one morning and seeing transactions you don’t recognize. You check your credit report, and suddenly, there are loans, credit cards, and late payments that you never signed up for. Your heart drops. Identity theft has turned your financial world upside down.Don’t worry though, we’re going to teach you how to rebuild credit after identity theft.

If this sounds familiar, you’re not alone. Millions of Americans fall victim to identity theft each year, and the road to credit recovery can feel overwhelming. At Credit Recovery Group, we specialize in helping people just like you restore their financial standing and get their credit back on track.

The good news? With the right steps, you can rebuild your credit and regain control of your financial future. Let’s break down exactly what you need to do.

Step 1: Check Your Credit Reports for Fraudulent Activity

Before you can start fixing the damage, you need to know exactly what’s wrong.

How to Get Your Credit Reports

You’re entitled to a free credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—once a year. You can get them at AnnualCreditReport.com.

What to Look For

  • Accounts you don’t recognize
  • Late payments on accounts you never opened
  • Inquiries from lenders you never applied with
  • Changes to your personal information (such as addresses you never lived at)

If you see anything suspicious, it’s time to take action.

Step 2: Dispute Fraudulent Accounts and Inquiries

Once you’ve identified fraudulent accounts, you need to dispute them with the credit bureaus.

How to Dispute Identity Theft on Your Credit Report

  1. Contact Each Credit Bureau:
    • Experian
    • Equifax
    • TransUnion
  2. Provide Documentation:
    • A police report or FTC identity theft affidavit
    • Proof of identity (driver’s license, Social Security number)
  3. Request a Fraud Alert or Credit Freeze
    A fraud alert tells lenders to take extra steps to verify your identity before issuing new credit. A credit freeze prevents any new credit accounts from being opened in your name.

Step 3: Contact Creditors and Close Fraudulent Accounts

Once you’ve disputed the fraudulent activity, you also need to contact the creditors directly.

How to Handle Fraudulent Accounts

  • Call the fraud department of each company where fraudulent accounts were opened.
  • Ask them to close the account and remove any fraudulent charges.
  • Request a letter confirming that the account was removed due to identity theft.

This step is critical because even if the credit bureaus delete the fraudulent accounts, creditors may still have records that could affect future applications.

Step 4: Start Rebuilding Your Credit Score

Now that you’ve removed the fraudulent accounts, it’s time to repair your credit.

Make Sure Your Current Accounts Are in Good Standing

  • Pay all bills on time – Payment history makes up 35% of your credit score.
  • Lower your credit utilization – Keep your credit card balances below 30% of your limit.

Use Credit-Building Tools

If identity theft wiped out your credit score, here are a few ways to rebuild your credit:

  • Secured Credit Cards – A secured card requires a deposit and is a great way to establish positive credit history.
  • Credit-Builder Loans – These small loans help boost your score by reporting on-time payments to the credit bureaus.
  • Authorized User Status – If a trusted friend or family member adds you as an authorized user to their credit card, their positive payment history can help improve your score.

Step 5: Monitor Your Credit and Prevent Future Fraud

After going through the nightmare of identity theft, the last thing you want is for it to happen again.

Set Up Credit Monitoring

Many services will alert you to changes in your credit report. Some of the best options include:

Use Strong Security Measures

  • Enable two-factor authentication (2FA) on bank and credit accounts.
  • Shred personal documents before throwing them away.
  • Avoid public Wi-Fi when checking financial accounts.

When to Seek Professional Help

If you’ve tried these steps and your credit score still hasn’t recovered, or you’re unsure where to start, a professional credit repair service like ours can help.

How Credit Recovery Group Can Help

At Credit Recovery Group, we specialize in:

  • Removing fraudulent accounts from your credit report
  • Negotiating with creditors on your behalf
  • Helping you rebuild your credit with a personalized plan

Identity theft can feel like a financial disaster, but you don’t have to go through it alone. We’ve helped thousands of people just like you take back control of their credit and get their lives back on track.

Final Thoughts: Take Action Today

Recovering from identity theft isn’t easy, but it’s absolutely possible. By following these steps—checking your credit reports, disputing fraud, rebuilding your credit, and staying vigilant—you can restore your financial health.

But if you’re feeling overwhelmed, Credit Recovery Group is here to help. Contact us today for a free consultation, and let’s start repairing your credit together.

📞 Call Now: 832-595-2526