Identity theft can have long-lasting consequences on your credit score and financial health. When criminals open fraudulent accounts in your name, they often fail to make payments, leading to delinquencies that get reported to your credit file. These negative marks can drop your credit score by dozens or even hundreds of points, making it difficult to qualify for loans, mortgages, or even rental agreements.
A damaged credit score can also increase the cost of borrowing. Higher interest rates and stricter approval requirements are common hurdles for identity theft victims. Some employers and landlords in California also review credit reports as part of background checks, so fraudulent accounts could harm job or housing opportunities.
The good news is that California law, combined with the federal Fair Credit Reporting Act (FCRA), provides tools to dispute fraudulent debts and repair your credit. By working with an identity theft attorney, you can force creditors and credit bureaus to remove inaccurate information. With persistence, victims can often restore their credit and financial reputation—but it may take months or even years depending on the scope of the fraud.
