Monthly Archives: September 2020

How to Re-establish Your Credit After Identity Theft

It happens to thousands of people each year; someone steals their credit card information and charges up a storm. Identity theft can happen to anyone – even people that are very careful to guard their personal information. When someone’s identity is stolen, their credit can take a long-term hit.

Often, people may not even know that they have been a victim of identity theft until they go to make a large purchase, such as a car, and attempt to take out a loan. Suddenly, in situations such as this, the victim will learn that not only has their identity been stolen, but their credit has been so severely damaged that they are unable to purchase a car – or unable to purchase a car that they would like because they are unable to get a loan for the amount they need.

While it is possible to get a bad credit car loan, if you have bad credit because you are an identity theft victim, do not sit back and accept the consequences of someone else’s illegal actions in your life. Instead, take steps needed to re-establish your credit. Here are some simple steps that may help you begin to re-establish your credit so that you don’t have to get a bad credit car loan that doesn’t quite meet your needs:

1. Write letters to the three credit bureaus to dispute the negative incidents on your credit report. These letters should clearly state that you are not responsible for the incidents. In some cases, you may be able to obtain proof of the stolen identity, such as a police report or a witness testimony. In other cases, you will have to rely upon your word alone.

2. Contact your lenders to report the identify theft. Your lenders will open up an investigation into the claim. You can share the results of this investigation with the credit bureaus if necessary (it’s a good idea to share any and all evidence). Often, lenders can interact directly with credit bureaus to correct any incidents on your account that were not your fault.

3. Sometimes, lenders and credit bureaus will not respond to your letters in an appropriate amount of time. If you are struggling to contact your lenders, then you may want to take additional steps, such as filing a police report or continuing to write letters. Lenders should be able to provide you with proper documentation about your account and if they are unable to do so, they may have to erase any negative reports from their reports to the credit bureaus. It is worth your time to follow up with lenders. After all, you will pay more for a bad credit car loan – even if the bad credit is not your fault.

We understand that people can have bad credit for a variety of reasons, including identity theft. Contact one of our experienced credit specialists at https://www.carloanskingston.ca/ to learn more about how we can help you take steps to re-establish your credit or even get a bad credit car loan until you are able to sort out your credit report.