Credit Repair for Identity Theft Victims

People with credit problems who are victims of identity theft are those who have lost their credit because someone has stolen their identity and run up their bills. If you are victim of identity theft, you are well-aware how difficult it can be to get back on your feet again.

Your identity might be stolen from someone who personally knows you or a professional theif.  Sometimes if you have a bad breakup in a relationship, your ex might be vindictive and use your identity to go on a shopping spree.  An unscrupulous business partner or employee may get your Social Security number and other identification from the office and run up the bills.   People may stand over your shoulder, peeking down at you while you are keying in your PIN number at the bank or at the checkout counter at the grocery store.   

No matter how stolen, the loss of your identity can create havoc with your credit. 

Fraud Alerts vs. Freeze Alerts

The minute you become aware of of your identity theft, you need to file a report with the police.  The police report will need to be provided to the three credit reporting bureaus when you notify them that your identity has been stolen.   

The credit reporting agencies will post a "fraud alert" once they have been notified that you are the victim of identity theft.  The companies are going to put up a Fraud Alert once the copies are evaluated.

The fraud alert is not necessarily a good thing and may result in your being denied credit in the future.  The fraud alert means that someone has committed a criminal act with your account, and that someone could very well be you.  Instead, ask the credit reporting companies to place a freeze alert on your accounts.  If your potential lender sees that you have a freeze on your accounts, it will be more likely to investigate and possibly give you the loan than if your report shows a fraud alert. The "freeze" designation  means that someone has affected your life by stealing your identity.

Protect Your Credit After Identity Theft

First, it is important to avoid identity theft by protecting your Social Security Card, driver's license and other important information about yourself.

You will need to stay alert to the activities that affect your credit report. It is important that you keep updated copies of your reports at all time. If you notice any suspicious activity, immediately dispute the claims against you.

You will also need to report any checks that you suspect were stolen. Monitor your banking account at all times to make sure that no unauthorized activities are going on. If the thief has already had access to your banking account, have your local bank immediately close the account and open a new one.  You will find that banks are very understanding and willing to help you if your identity or financial accounts have been tampered with.  It is important that you alert your utility providers and anyone that you have open accounts with that your banking information was stolen and that you might need to replace the checks previously written.

If you have credit cards report them immediately to get replacements. Let your credit card issuer know what happened so that any bouncing payments occuring because of the theft will not be reported negatively .

Federal Notices of Identity Theft

It is also important that you contact your Social Security Office to find out if your Social Security has been used out of place. If actions have been listed on your card, be sure to let the Social Security Administrators know.

Finally, you will need to contact the Identity Theft Clearinghouse, Federal Trade Commission, in Washington DC to let them know you are a victim of identity theft. Get the online complaint form from the FTC.