Quick action checklist

  • File an identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov and get an Identity Theft Report and recovery plan (FTC).
  • Place a fraud alert or credit freeze with the three major bureaus (Equifax, Experian, TransUnion).
  • Pull free credit reports from AnnualCreditReport.com and identify fraudulent or inaccurate items.
  • Dispute unauthorized accounts with the credit bureaus and creditors, and keep copies of all correspondence.

Step-by-step recovery guide

  1. Stop further fraud
  • File a report at IdentityTheft.gov and consider filing a police report if local law enforcement requires it to investigate or for certain creditors. The FTC’s portal generates an Identity Theft Report and sample letters you can use with creditors (FTC).
  • Place a credit freeze to block new accounts or a fraud alert to make new account openings harder (Equifax, Experian, TransUnion).
  1. Document and dispute each fraudulent item
  • Request your full credit reports from AnnualCreditReport.com and highlight accounts, addresses, or inquiries you didn’t authorize.
  • Send a dispute to each credit bureau listing the fraudulent item(s). Under the Fair Credit Reporting Act (FCRA), bureaus generally investigate disputes within 30 days (CFPB, FCRA).
  • Provide supporting documentation: your FTC Identity Theft Report, police report, copies of ID, bills showing legitimate accounts, and letters from creditors confirming fraud.
  1. Work directly with creditors and collectors
  • Contact the creditor shown on the fraudulent account, tell them the account is fraudulent, and ask them to close or block it. Get written confirmation they will remove or not pursue the debt.
  • If a collection agency is involved, request validation of the debt and provide your ID Theft affidavit. Insist the collector update the account status to “fraud/identity theft” or remove it if appropriate.
  1. Repair your credit file and follow up
  • After successful disputes, confirm the bureaus update your reports and that negative entries tied to the theft are deleted or corrected.
  • If a bureau doesn’t correct an error, you can submit a statement of dispute to be included in your file and pursue further remedies (send documented proof, escalate to CFPB if needed).

Practical rebuilding strategies (once fraudulent items are removed)

  • Reestablish positive payment history: Pay existing legitimate accounts on time—payment history is the single largest FICO factor.
  • Reduce utilization: Keep credit card balances low (below 30% of limits; lower is better).
  • Use a secured credit card or credit-builder loan to add positive trade lines if you lack open accounts.
  • Keep older accounts open that are legitimately yours to preserve the length of credit history.
  • Consider credit monitoring to detect new activity; some banks or card issuers offer free monitoring tools.

Documentation checklist (keep copies of everything)

  • FTC Identity Theft Report and recovery plan (IdentityTheft.gov)
  • Police report (if filed)
  • Letters/emails to creditors and responses
  • Proof of identity (driver’s license, passport, SSN evidence)
  • Copies of credit reports showing disputed items and outcomes

Real-world expectations and timeline

  • Dispute resolution: Credit bureaus typically investigate disputes within 30–45 days; results depend on creditor responses and documentation (FCRA, CFPB).
  • Short-term score movement: Removing large fraudulent balances or reopened delinquent accounts can produce meaningful score improvements quickly, but rebuilding to prior levels often takes months to years depending on the damage.
  • Long-term repair: On-time payments and reduced utilization steadily rebuild scores—expect measurable improvement in 6–12 months, and larger gains over 1–3 years for severe cases.

Common mistakes to avoid

  • Waiting to act: Delay lets thieves do more damage and can complicate disputes.
  • Relying on soft solutions only: A fraud alert helps, but a freeze is stronger for preventing new accounts.
  • Closing legitimate old accounts unnecessarily: That may shorten average account age and hurt your score.
  • Using unvetted “credit repair” services without checking reviews and compliance—many tasks are free and you can handle disputes yourself.

When to get professional help

  • Hire a consumer attorney or an accredited credit counselor if you encounter uncooperative creditors, legal threats, or if the theft is complex or large-scale.
  • Use reputable nonprofit credit counselors (search the National Foundation for Credit Counseling) for budgeting and rebuilding guidance.

Useful resources and internal links

Short FAQs

  • How long does it take to rebuild credit after identity theft? It depends on the extent of fraud; disputes may be resolved in weeks, but rebuilding a score can take months to years.
  • Will freezing my credit hurt me? No — a freeze prevents new accounts; you can temporarily lift it for legitimate applications.

Authoritative sources

  • Federal Trade Commission (FTC), IdentityTheft.gov
  • Consumer Financial Protection Bureau (CFPB), credit reporting and dispute guidance
  • Fair Credit Reporting Act (FCRA)

Professional disclaimer

This article is educational and not individualized legal or financial advice. For advice tailored to your situation, consult a qualified consumer law attorney, certified credit counselor, or financial planner.

(Information current as of 2025.)