Discovering that you are a victim of identity theft can be an incredibly violating feeling, as it indicates someone has access to your personal, sensitive information. While this can be upsetting, you may also be frustrated because of the impact this fraud has on your credit score. If you are a victim of identity theft, the following blog explores the steps you can take to repair your credit and why connecting with a California identity theft victim lawyer is critical.
How Can Identity Theft Hurt My Credit Score?
Understanding how identity theft can impact your credit score is critical to taking the necessary steps to remedy these matters. Generally, when someone commits identity theft, they will likely take out loans in your name to receive large sums of money without paying the lender back. As such, it makes it appear like you have late payments on your account. Additionally, they can make large purchases and never commit to the repayment plan. In some instances, an identity thief may even use your personal information to commit a crime.
As such, these late payments can cause your credit score to drastically drop. Additionally, you’ll find that if a debt is sent to collections, it can result in a lawsuit against you for a debt you didn’t even know existed.
How Can I Repair My Credit if I’m a Victim?
If you discover that you are a victim of identity theft, taking the necessary steps to mitigate damages and protect yourself during these times is critical. Generally, the first thing you’ll want to do is place a fraud alert or credit freeze on your account. A fraud alert requires lenders to verify your identity before opening credit in your name, while a credit freeze locks your account so no one can access it. Which option you should choose depends on your personal circumstances when the theft occurs.
Once you have taken steps to prevent additional accounts from opening in your name, you’ll want to then report the theft to the Federal Trade Commission. You may also want to consider filing a police report. Though it can be difficult for the police to investigate these matters, filing a report may help when communicating with lenders and creditors.
Next, you’ll want to contact the creditors to explain the circumstances. Send over any evidence that shows you are not responsible for the debt in your name.
Finally, you’ll want to connect with an experienced consumer defense attorney. Unfortunately, the impacts identity theft can have on your credit and subsequently, your life can be intense. As such, it’s in your best interest to explore your legal options. At Loker Law, we understand how frustrating these matters can be, which is why we are dedicated to fighting for you. Connect with us today to learn how our firm can represent you.