The Role of Credit Repair Companies in Identity Theft Recovery

The Role of Credit Repair Companies in Identity Theft Recovery

The digital era comes with its fair share of upsides and downsides. One of the top benefits of technology is access to information. You can use different tools to retrieve data on just about anything. On the other hand, someone can dig deep and access your sensitive info for malicious purposes.

For instance, they can use your personal data to impersonate you, open credit accounts, make purchases, claim benefits, and complete fraudulent transactions. These malicious activities can dent your credit score, leaving you in a tricky situation. Fortunately, there are several credit repair companies that can help you with identity theft recovery.  Here are some of the best options to consider, courtesy of

How Does Identity Theft Impact Your Credit Score?

As mentioned above, when someone obtains your financial information without your consent, they can use it for personal gain. In most cases, identity thieves use your data to commit fraud. These fraudulent transactions can adversely affect your credit rating. In any case, the thief might take out a loan or accrue debts with no intention to repay them. Your creditors will report the missed payments to credit bureaus, massively harming your credit score.

Another way identity theft impacts your credit score is through increased credit usage. An identity thief may open new credit lines in your name and use your credit cards irresponsibly, increasing your credit usage ratio. A high usage ratio lowers your credit score.

Lenders usually conduct hard inquiries when appraising loan applications. Since identity thieves apply for credit from different lenders, it will result in multiple hard searches. Too many credit checks within a short timeline adversely affect your credit score.

Most people realize they are victims of identity theft long after the damage has already been done. Knowing the signs of identity theft can help you secure your accounts and protect your credit score before it is too late. As a general rule, always check your credit report and financial statements regularly for warning indicators, such as:

  • Unrecognizable accounts in your credit report
  • Unfamiliar transactions and unexplainable bills
  • Credit card charges
  • Receiving calls from collection agencies on missed payments
  • Denial of credit
  • Declining credit score
  • Inability to sign into banking accounts

Role of Credit Repair Companies in Identity Theft Recovery

Identity theft recovery refers to the steps you take to mitigate the impact of identity theft on your financial standing. The first step is to report the crime to the Federal Trade Commission (FTC), or a similar agency, and the police. After filing a report with the police, contact credit reporting agencies to place fraud alerts on your accounts.

Next, contact your bank, credit card issuer, and all other companies involved. Make sure you gather adequate evidence and documents to strengthen your case. If you have online accounts, update the passwords and login credentials to prevent similar scenarios in the future. Lastly, contact a credit repair company to help you rebuild your credit score.

As you may have noticed, analyzing your accounts and credit reports for signs of identity theft can be tedious and time-consuming. It might take more than three months to get your rightful score back.

Credit repair companies can help expedite the process. They have the experience and expertise to navigate the complex identity theft recovery process. Besides, they have monitoring tools that an ordinary consumer cannot access easily. They use these tools to detect fraudulent transactions in your credit report. After completing this stage, they can file a dispute with reporting agencies on your behalf.

Identity theft recovery can be a valuable service for protecting your credit rating. Some of the most critical services offered under this package include:

  • High risk transaction monitoring
  • Credit monitoring
  • Debt monitoring
  • Dark web monitoring
  • Safe browsing tools
  • Bank account monitoring
  • Home title monitoring

With that said, it’s important to note that not all credit repair companies offer identity theft recovery services. You may end up spending more money hiring different firms to work for you. To avoid this, you need to research widely to find an agency that can meet all your needs in a single package. One of the best ways you can learn more about a credit repair company is by checking their service portfolio. 

After that, you can verify the quality of services offered by going through online reviews from current and previous clients. Alternatively, you can seek recommendations from friends, but this should always be backed up with further research to make sure you choose the right option for you.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.