How Can I Fix My Credit After Credit Card Fraud?

What Is Credit Card Fraud?

Credit card fraud occurs when someone uses a credit card without permission for the purpose of stealing goods or money. It was the most common form of identity theft in 2025, according to the Federal Trade Commission (FTC), with nearly 600,000 complaints.

Identity thieves typically gain access to your account or personal information through skimming, phishing, a data breach or physical theft. Depending on what they gain access to, they may engage in one of two forms of credit card fraud:

• Existing account fraud: This happens when someone steals your account information or even your physical credit card and uses it without your authorization. Criminals may even gain access to your online account and lock you out.
• New account fraud: This form of fraud involves opening a new credit card account in your name, then making purchases with the account without repaying any of the debt. It happens when someone manages to steal your personal information, like your name, date of birth and Social Security number.

Credit card fraud can wreck your credit, especially if you're not regularly monitoring your credit reports and credit card statements. With existing account fraud, the unauthorized charges can push up your credit utilization rate.

With new account fraud, the damage can be much more severe. When fraudsters apply and open an account in your name, it'll add a hard inquiry and a new tradeline to your credit file, both of which can temporarily ding your credit score. Racking up a balance on the card will also result in a high utilization rate on the account.

But what really hurts is when they don't pay the bill. Even a single missed payment can have a drastic impact on your credit score and make it difficult to get approved for new credit.

Learn more: What Is Credit Card Fraud?

How to Fix Your Credit After Credit Card Fraud

Finding out that you've fallen victim to credit card fraud can be an incredibly stressful experience, but the recovery process is thankfully straightforward. Here are some steps you can take as soon as you discover the theft.

1. Place a Fraud Alert or Security Freeze

The first thing you'll want to do is to ensure the thief can't do more damage, either with a fraud alert or a security freeze—both of which you have the right to place on your credit file.

A fraud alert is a notation on your credit reports that you are or think you may be a victim of identity theft and instructs creditors to verify your identity before granting credit. If someone were to apply for credit in your name, the creditor will see the alert and call the number you provided to verify your identity before proceeding.

An initial fraud alert lasts one year, but you can get a seven-year extended fraud alert if you provide a copy of an identity theft report or police report showing that you're a victim of identity theft. Requesting a fraud alert with one credit bureau will automatically apply it to your credit reports with the other bureaus.

If you want even more protection, consider a security freeze, also known as a credit freeze, which limits lenders from accessing your credit reports to open new accounts. Credit freezes can only be lifted if you request a temporary thaw, so you can apply for credit, or lift it permanently.

Note, however, that you'll need to request a security freeze with all three credit bureaus (Experian, TransUnion and Equifax) individually.

Learn more: Fraud Alert vs. Credit Freeze: Key Differences Explained

2. Notify Your Credit Card Company About the Fraud

If a criminal stole your existing account information, log in to your online account or call the number on the back of your card to report the fraud.

The card issuer can lock your account, preventing any further unauthorized purchases, and cancel the card. You'll then receive a new card with a different account number, allowing you to use the account again. Most credit card companies offer zero liability fraud protection, so you don't have to worry about being responsible for the fraudulent charges.

If you find a fraudulent account on your credit report, call the number listed for the creditor to report that the account was opened without your permission. You may be asked to provide documentation verifying your identity.

Learn more: Does Locking Your Credit Card Hurt Your Credit?

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3. File an Identity Theft Report

Start by reporting the identity theft to the FTC at IdentityTheft.gov. The federal agency will create an FTC Identity Theft Report, which you can provide to your credit card company, credit bureau or any other organization that requests it to correct your information.

The FTC will also provide you with a personal recovery plan to help you get back on your feet.

Depending on the situation, you may also wish to file a police report with your local law enforcement agency. This can be particularly beneficial if someone stole your physical card or other information from your wallet or mailbox.

4. Dispute Fraudulent Information on Your Credit Report

You have the right to dispute any inaccurate or fraudulent information you find on your credit reports. The best way to get started is by visiting the online Experian Dispute Center. You can also reach out to the other credit bureaus online, by mail or over the phone to submit disputes.

When you dispute information on your credit reports, the reporting agencies must investigate within 30 days—or up to 45 days if you file after receiving your free annual credit report or provide additional information after your initial submission.

Learn more: How to Dispute Credit Report Information

5. Verify That Your Credit Reports Have Been Corrected

After you receive the results of the dispute, check your credit reports to verify that they've been corrected.

If the information is still showing on your reports, contact the credit bureaus or credit card company to make sure the information gets removed.

How to Avoid Future Credit Card Fraud

There's no surefire way to avoid credit card fraud completely, but there are steps you can take to minimize your exposure and possibly even make your information harder to use. Here are some tips to help you get started:

• Monitor your account statements. Check your online accounts or use a budgeting app regularly to keep track of your credit card transactions. As soon as you notice one you don't recognize, reach out to your card issuer. You may also consider requesting transaction alerts for new charges on the account.
• Use multifactor authentication (MFA). This security measure requires that you provide biometric authentication or a passcode sent to your phone or email to log in to your online accounts. So, even if someone steals your username and password, they won't be able to get into your account.
• Enable fraud alerts. You don't have to be a victim of identity theft to place an initial fraud alert on your credit reports, and doing so can stop someone who has your personal information from trying to open a new account in your name.
• Be careful when you're online. Only use websites you trust, especially when it involves entering personal or account information. Also, watch out for phishing emails and text messages; if you receive something asking you to open an attachment or click on a link and provide information, double-check the sender's email address and the link URL before doing anything.
• Use virtual cards. Some credit card issuers allow you to create one-time virtual credit card numbers to make purchases online. If that card number gets compromised, you can simply cancel it without affecting your main account number.
• Use a virtual private network (VPN). Whenever you're on a public Wi-Fi network, a VPN can encrypt your connection and ensure that no one else on the open network can eavesdrop.

Frequently Asked Questions

The Bottom Line

Credit card fraud can be unsettling, but the damage doesn't have to be permanent. Reporting the charges, freezing your credit and disputing inaccurate information can put you back in control.

Catching problems early makes recovery much easier. Experian's free credit monitoring alerts you when there's a new inquiry or account on your Experian credit report, so you can act before the damage spreads.