The Effects of Identity Theft on Your Credit
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The Effects of Identity Theft on Your Credit
When someone steals your identity, it can wreak havoc on many aspects of your life. Your bank account can be drained, your reputation could be damaged, or you could even be accused of a crime in some situations. One of the biggest impacts, however, is the one on your credit.
Many adults work for years to build a healthy credit profile and high credit score. Even the slightest oversight can result in your score dropping, as it drops much quicker than you can increase it. Identity theft can have many effects that can destroy your credit. Some reasons why your credit can suffer include:
- An identity thief can apply for credit cards or loans in your name, and then fail to ever make a payment
- You can have numerous collection accounts and defaults reported by the time you realize anything is wrong
- You can suddenly have maxed out accounts in your name, which is a negative factor for credit
- You can have several inquiries reported due to multiple credit applications in your name
Once you realize your identity was stolen, your credit does not automatically go back to normal. Instead, there is a complex process of obtaining proof of the identity theft and contesting the information with all three major credit bureaus to have it removed. This can be an arduous and time-consuming process, and you might have to go through several rounds of communications and submitting documentation to even begin repairing all of the damage that the identity thief did.
Contact a Consumer Protection Lawyer in Los Angeles for Help
At the law office of Martin & Bontrager, APC, our Los Angeles consumer protection attorneys help clients who have been the victims of identity theft. Call 323.940.1700 or contact us online to learn how we might help you today.