If identity theft caused a drop in your credit score, an organized recovery plan shortens the time to restoration. Below are practical, prioritized steps you can take immediately and over the next months to repair your credit file and rebuild your score.

  1. Document the identity theft
  • File a report at IdentityTheft.gov and create a recovery plan. The FTC’s site generates an Identity Theft Report and sample letters you can use to dispute accounts (FTC — IdentityTheft.gov).
  • File a police report if recommended by local law enforcement—this helps with extended fraud alerts and creditor disputes.
  • Keep copies of all records: police reports, FTC report, emails or letters from creditors, and notes of phone calls (dates, names, outcomes).
  1. Get and review your credit reports from all three bureaus
  • Request reports at AnnualCreditReport.com (the official site authorized by federal law) and review Equifax, Experian, and TransUnion for unfamiliar accounts, inquiries, or addresses.
  • Look for new accounts, changed addresses, delinquent tradelines, and collection entries that you did not authorize.
  1. Place a fraud alert or credit freeze
  • Place an initial fraud alert by contacting one bureau; that bureau must notify the others. Initial alerts typically last one year. If you have an Identity Theft Report, you can request an extended alert and pursue a credit freeze. (FTC – fraud alerts & credit freezes).
  • A credit freeze prevents most new credit accounts from being opened until you lift the freeze. Freezes are free and must be placed with each credit bureau separately.
  1. Dispute fraudulent items on your credit reports
  • Send disputes to each credit bureau that lists fraudulent or inaccurate items. Under the Fair Credit Reporting Act (FCRA), bureaus generally must investigate within 30 days and correct errors if they can’t verify the information (CFPB guidance).
  • Include copies (not originals) of your Identity Theft Report, police report, government ID, and any creditor correspondence. Use the FTC’s sample dispute letters when possible.
  • Also contact the creditor or collection agency reporting the fraudulent account and tell them it was unauthorized; request written confirmation when the account is closed or removed.
  1. Fix accounts and stop ongoing fraud
  • Close or freeze compromised accounts and get new account numbers for legitimate accounts.
  • For tax-related identity theft, follow IRS guidance and consider getting an IP PIN (Identity Protection PIN) via the IRS Get an IP PIN tool to protect future returns (IRS).
  1. Rebuild credit responsibly
  • Add positive, on‑time payment history. Options include a secured credit card, a credit‑builder loan, or becoming an authorized user on a trusted person’s account (used selectively).
  • Keep utilization low (aim for under 30%, ideally under 10% on revolving accounts) and pay balances in full when possible.
  • Consider a mix of payment types over time; small, well‑managed credit steps help scores recover faster than opening many accounts at once.
  1. Monitor and protect your file going forward
  • Enroll in free monitoring through your credit card providers or use paid identity monitoring if you prefer added alerts, but be cautious of glossy promises—no service can prevent all fraud.
  • Watch for suspicious mail, new inquiries, and unexpected collection calls.

Timeline and expectations

  • Some fraudulent items can be removed within weeks after a successful dispute, but full score recovery often takes months and sometimes longer depending on how much legitimate history you need to rebuild.
  • A removed fraudulent tradeline can improve your score quickly; rebuilding healthy credit history (establishing new positive tradelines) typically takes 6–12 months for measurable improvement.

Common mistakes to avoid

  • Waiting to act—delays give fraudsters time to add more damage.
  • Only checking one bureau; many fraudulent accounts appear on a single bureau first.
  • Opening multiple new accounts at once to “replace” credit — that can lower your score and increase risk.

Professional tips

  • Keep a single, dated recovery file (digital and a paper backup) with all correspondence and dispute proof.
  • When disputing, include clear evidence and a concise cover letter referencing your Identity Theft Report; clarity speeds investigations.
  • If disputes stall, escalate to CFPB for help with unresolved credit reporting problems (CFPB — consumer complaint portal).

Related guidance from FinHelp

  • For detailed instructions on correcting credit file errors after identity theft, see our step‑by‑step guide: Step-by-Step: Correcting Identity Theft on Your Credit File (finhelp.io).
  • To understand how identity theft typically appears on credit reports and the recovery actions to expect, read How Identity Theft Shows Up on Your Credit Report and Recovery Steps (finhelp.io).

Authoritative sources & further reading

  • Federal Trade Commission (IdentityTheft.gov) — recovery plan, sample letters.
  • Consumer Financial Protection Bureau (CFPB) — disputing errors and credit reporting rights.
  • AnnualCreditReport.com — official source for credit reports.
  • IRS — Get an IP PIN (for tax‑related identity theft protection).

Professional disclaimer
This article is educational and does not constitute legal, tax, or personal financial advice. For complex cases, especially those involving significant fraudulent debt or identity theft across tax accounts, consult a qualified attorney or certified credit professional.

If you’d like, I can convert these steps into a checklist or sample dispute letters tailored to the common items on your credit report.