If identity theft has damaged your credit, the first step is to file a report with the FTC at IdentityTheft.gov. This creates an official Identity Theft Report.
Place fraud alerts on your credit reports with all three bureaus. Dispute any fraudulent accounts with documentation, including the FTC report.
Lenders understand identity theft. The key is to show that you are actively resolving the issue and that the fraudulent accounts are not your responsibility.
Immediate Steps
Step 1: File FTC report at IdentityTheft.gov. Step 2: Contact all 3 credit bureaus and place fraud alerts. Step 3: Review your credit reports for fraudulent accounts. Step 4: Dispute fraudulent accounts.
Dispute Process
Dispute fraudulent accounts with each bureau. Include: FTC Identity Theft Report, proof of your identity, and a description of which accounts are fraudulent. Bureaus must investigate within 30 days.
Documentation
You'll need: FTC Identity Theft Report, police report (if filed), credit reports showing the fraudulent accounts, and any correspondence with creditors or bureaus.
Timeline
Disputes can take 30-90 days to fully resolve. Start as early as possible before applying for a mortgage. Fraud alerts last 1 year (renewable). Extended fraud alerts last 7 years.
Tips
Keep detailed records of all communications. Follow up regularly. Consider a credit freeze for maximum protection. Work with a mortgage lender who understands identity theft situations.
Lender Perspective
Lenders view identity theft differently from your own credit mistakes. Provide thorough documentation and most lenders will work with you, especially FHA and VA.