What to Do If Your Credit Is Affected by Identity Theft

The short answer

If you suspect identity theft on your credit, take five actions immediately:

1. File a report at IdentityTheft.gov — this is the FTC's official reporting tool and creates the documentation you'll need for everything else.
2. Place a free credit freeze with all three bureaus.
3. Pull all three credit reports and identify every fraudulent item.
4. Dispute fraudulent items as identity theft using the FTC report.
5. File a police report if there's reason to (depends on the situation).

Step-by-step recovery

1. File at IdentityTheft.gov

Go to identitytheft.gov and walk through the assistant. You'll get:

• An Identity Theft Report (the official FTC document)
• A personal recovery plan based on what was stolen
• Pre-filled letters to send to creditors

The IdentityTheft.gov report is what triggers your enhanced rights under the Fair Credit Reporting Act — including the right to permanent removal of fraudulent accounts.

2. Place a credit freeze (all three bureaus, free)

A credit freeze blocks anyone from opening new credit in your name. It's the strongest protection available, and it's been free since 2018.

Place freezes with all three:

• Equifax: equifax.com/personal/credit-report-services/credit-freeze or call 800-685-1111
• Experian: experian.com/freeze or call 888-397-3742
• TransUnion: transunion.com/credit-freeze or call 888-909-8872

Each takes 5 minutes online. Save your freeze PIN — you'll need it to lift the freeze later.

3. Pull and review your reports

Get your free reports at AnnualCreditReport.com. Compare every item against accounts you actually opened.

Flag anything that wasn't yours:

• Credit accounts you didn't open
• Inquiries you didn't authorize
• Personal info that's wrong (addresses you've never lived at, employers you've never had)

4. Dispute fraudulent items

For each fraudulent item, send a dispute letter to the bureau that includes:

• Your IdentityTheft.gov report
• A copy of your driver's license
• Proof of your real address (utility bill, bank statement)
• A specific list of what you're disputing and why

Under FCRA section 605B, fraudulent items must be permanently blocked from your report — they can't be re-investigated or re-reported once you've shown they're identity theft.

5. Notify the creditors directly

For each fraudulent account, contact the creditor's fraud department directly. Provide:

• The IdentityTheft.gov report
• A written request to close the fraudulent account and remove all reporting

Most creditors take 30-90 days to fully process this. Stay on them.

6. File a police report (if applicable)

A police report is sometimes required by:

• Creditors that won't accept just the IdentityTheft.gov report
• State enhanced ID-theft protections
• Insurance claims tied to the theft

Most local police departments will take a basic report. They typically don't investigate, but the report itself unlocks additional rights.

Things to do while you recover

• Change passwords on every financial account, especially ones using compromised emails.
• Set up two-factor authentication on every financial account.
• Get a new driver's license if your physical license was stolen.
• Get a new SSN card if your SSN was the leak vector (extremely rare; the SSA generally doesn't issue new SSNs).
• Lock your tax filing with an IP PIN at IRS.gov to prevent fraudulent tax returns.
• Check your bank statements daily for the first 90 days.

How long recovery takes

If caught early (within 30 days of first fraudulent account):

• 2 weeks: Freezes in place, IdentityTheft.gov report filed
• 30-60 days: Fraudulent items removed from reports
• 60-90 days: Full recovery; credit score returns to baseline

If discovered late (months after fraud started):

• 30 days: Freezes in place, immediate further damage stopped
• 3-6 months: Most disputes resolved
• 6-12 months: Last few stragglers cleared up; rebuilding starts

What to do next

If you suspect identity theft right now, file at IdentityTheft.gov before doing anything else. Then place freezes with all three bureaus. Those two steps alone stop most additional damage.

If you've already started the process and need help with disputes, book a free consultation. We've worked through dozens of identity-theft credit recoveries.