Rebuild Your Credit After Identity Theft

What FICO actually measures

• •Payment history — 35%. Late payments, charge-offs, collections, public records. The single biggest lever.
• •Amounts owed (utilization) — 30%. Total balance / total credit limit, and per-card utilization.
• •Length of credit history — 15%. Average age of accounts and age of oldest account.
• •Credit mix — 10%. Mix of revolving (cards) and installment (loans).
• •New credit — 10%. Recent inquiries and new accounts.

The 12-month rebuild playbook

1. 1.Confirm the disputed items are gone. Pull all three reports again 60 days after the bureaus' final dispute results.
2. 2.Open one secured credit card. A secured card is backed by a deposit you make ($200–$500 is plenty). Use it for a recurring small charge and pay the statement balance in full.
3. 3.Consider one credit-builder loan. A credit-builder loan is a small installment loan from a credit union where the loan proceeds sit in a savings account; you pay the loan, build payment history, and get the savings at the end.
4. 4.Keep utilization under 10%. Pay the card down before the statement closes — not just by the due date.
5. 5.Don't apply for new credit while you're still rebuilding. Each hard inquiry costs a few points. Set a moratorium for 12–18 months.
6. 6.Leave old positive accounts open. Don't close your oldest credit card just because you don't use it.
7. 7.Automate everything. Auto-pay the statement balance. Calendar a monthly review.
8. 8.Pull reports every 90 days. Confirm nothing has come back.

Things that don't work

• •"Authorized user" piggybacking from strangers (paid services). Sometimes works briefly, often doesn't.
• •Disputing accurate items as "not mine" hoping the bureau will delete on autopilot. This is credit-repair fraud.
• •"Pay this $499 fee and we'll fix your credit." No.

How long this takes

Most consumers see a 50–100 point improvement in 12 months of disciplined rebuilding. Reaching the high 700s after a serious identity-theft hit usually takes 18–36 months. There are no shortcuts — but the path is well-paved.