Repairing Your Credit After ID-Theft

Zebert L. Brown

In my last blog, I pointed out that identity theft is a major problem for consumers no matter the size of your bank account, and I outlined a few free, simple safeguards you can take to protect yourself against identity theft. In this week’s blog, I’ll outline steps you should take to repair the damage resulting from identify theft. But first, some myth busting concerning ID-theft protection and credit repair services.

According to, only one-third of all cases reported as ID-theft actually involve stolen identities. The rest involve stolen credit cards. However, that doesn’t mean you shouldn’t take all necessary precautions to protect yourself against ID-theft. Hackers and scammers are getting smarter in how they carry out their crimes. Therefore, the harder you make it on them the better off your digital wallet will be.

You could pay an identity theft protection service, such as, LifeLock, TrustedID or Zander Insurance’s ID-Theft Protection Plan, to protect your identity for a small monthly fee, but most of the services they charge for their services you can do yourself for free. Such services include:

Posting a Fraud Alert to your Credit Card Account. Contact any of the three major credit bureaus to set this up yourself:

The first credit bureau you contact will notify the rest.

Opting-Out of Email/Mailing List. is “the official Consumer Credit Reporting Industry website to accept and process requests from consumers to Opt-In or Opt-Out of firm offers of credit or insurance”. Just click on the “Out-In/Out-Out” button at the bottom of the screen to begin the application process. Once your application is submitted, your request remains in affect for 5-years. You’ll have to renew your application at this point in order to continue the service.

Credit Reports and FICO Scores. Under the Fair and Accurate Credit Transactions (FACT) Act, you’re entitled to a free copy of your credit report from the three major credit bureaus each year. You can contact each credit bureau separately or you can request all three at It should be noted, however, that your FICO credit score doesn’t appear on free versions of your credit report. Therefore, it is highly recommended that you contact the credit bureaus directly and pay their one-time service fee (usually between $15-20 per report) to obtain a complete copy of your credit report with credit score.

(Note: will also provide you a copy of your credit report with credit score from Transunion during their 7-day trial period…for $1, but in order to receive your credit reports from the other two credit reporting agencies, you’ll have to subscribe to their membership service at $14.99 per month.)

Report a Lost/Stolen Debit/Credit Card. If you can pick-up your cell phone or search the web, it’s a sure bet you can contact your bank or credit card company yourself and report your debit or credit card as lost or stolen or if you suspect someone has committed bank fraud by writing unauthorized checks against your account.

Of course, there’s that $1 million total service (insurance) guarantee these company’s claim. This may sound good, but if your lose is covered by other forms of insurance (homeowners/renters, merchant or even federal consumer protections) it’s highly unlikely you’ll ever see a penny of that so-called “guarantee”. So, what should you do to recover your identify if you’ve become a victim of identity theft?

  • Contact your bank or credit card company immediately and report your credit card as lost or stolen. In most cases, your bank or credit card company will close your account and start a new one at your request provided you’re able to show prove of fraudulent activity. Your monthly credit card statement along with a copy of the police report (see below) should do the trick.

  • If the theft includes personal checks, ensure to place a “stop payment” on the check or series of missing checks.

  • Change the Personal Identification Number (PIN) to your ATM upon being issued new debit/credit cards.

  • Place a fraud alert with the three major credit bureaus to prevent any further unauthorized purchases using your credit card.

  • Place a freeze on your credit accounts. This will prevent any new credit activity from being added to your account for at least five months.

  • Contact local law enforcement to complete a police report providing as much information as you can concerning the loss or theft of your debit or credit card or other identification that may be missing (i.e., driver’s license, Social Security Card, etc.).

  • Obtain copies of your credit reports and review each for suspicious activity and dispute any questionable purchases. This includes any new lines of credit opened in your name.

  • Contact the Federal Trade Commission (FTC) to close any fraudulent accounts opened in your name.

  • You may also want to contact your local Postmaster, Social Security Administration and state Department of Motor Vehicles (DMV) to report a wrongful change of address or that vital pieces of identification has been stolen and/or misused in your name.

  • Contact your creditors (those you normally pay via debit or credit card) and notify them of the investigative work being conducted concerning ID-theft of your accounts. Follow-up your phone calls with a Certified Letter.

Being penny-wise while protecting your identity doesn’t have to mean sacrificing quality results. It simply means finding the right services to do the job at a price you can afford. And what better price is there than free? By doing it yourself, your only cost is time, but by taking immediate action you’ll be protecting yourself against liability for any unauthorized purchases charged to your accounts resulting from the loss or theft of your banking or credit card information. Of course, you could pay for the convenience of having these services performed for you, but now that you know you can do them yourself for free, why not put that money towards an investment account of some sort, e.g., a Roth IRA or 529 Qualified Tuition Program plan, and watch those dollars grow instead?

That’s my blogpost for this week. Join the discussion by posting your comments below. And don’t forget to tune in next week where I’ll once again share more ways you can break the debt cycle and then go…beyond.

Zebert L. Brown is the author of Break the Debt Cycle in 3 Simple Steps and a 16 year Navy veteran with specialties in administrative management, career development and public relations. Like me on Facebook and Follow me on Twitter.