Identity theft can have a long term negative impact on all aspects of your life, especially your finances and credit report. The process of repairing bad credit in the wake of identity theft should start right away and be done with patience and persistence.
As soon as you notice the signs of identity theft, such as fraudulent credit card charges or accounts in your name you did not open, you should begin disputing and reporting. The longer you wait to stop the identity theft activity, the more damage can be done to your credit.
First, file an identity theft report to document the crime before you start disputing individual incidents of fraud. Armed with the official identity theft report, dispute each individual charge and account created by the thief. Don’t restrict your disputes to the credit agencies. Lodge disputes with each company, as well.
The forms and documents used by the identity thief to make purchases, open accounts, and conduct their other fraudulent activities, are vital tools in stopping and then repairing the damage done to your credit. Copies of the originating documents can be gathered as you call around to each of the businesses disputing transactions. You can also choose to give the authorities handling your identity theft criminal complaint permission to obtain these documents as part of the official investigation. Either way, additional proof that the fraudulent credit activity is the result of identity theft helps repair bad credit more effectively. This step in repairing bad credit after identity theft will take the longest, and be the most frustrating.
Remember that, no matter how long it takes, patience and persistence are vital to clearing up the fraud.
Once you have all the reports, disputes, and documents put together you should ask the credit bureaus to block the fraudulent information from appearing on your credit report. Be prepared to provide copies of the proof you've compiled. Blocking the information from appearing will, in all likelihood, stop most of the credit damage from affecting you.
As you work on repairing bad credit caused by an identity thief, you have to stay organized. Emotions and stress make keeping track of the large amounts of information difficult, so a system of note taking and document organization is necessary to keep all of it straight.
Consider working with a professional, such as a lawyer or accountant specializing in identity theft, who can stay objective throughout the process.
Bad credit and other financial roadblocks are some of the longest lasting consequences of having your identity stolen. Get on top of the credit problem immediately and stay patient as you work toward repairing your credit after identity theft.
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