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How Credit Card Fraud Affects Your Credit Score

Credit card fraud can affect your credit score in several ways.

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First of all most credit card thieves immediately max out your card in order to get as much money off of it as possible. The minute that they do this it will be reported to the credit card companies and the Credit Bureau that you have used up all of your available credit. This immediately causes a black mark on your credit report as it makes you look desperate. 

Secondly, credit card thieves can damage your credit report by applying for additional credit cards and loan products under your name. Each time they make an application a hard inquiry is sent to your credit bureau. Each time a hard inquiry is made another negative dent is made into your credit rating. If the criminal applies for thirty cards for instance they could lower your credit rating substantially. 

Thirdly, you may not detect the fraud in enough time to not be liable for the debt. This can happen if you do not detect the fraudulent charge within sixty days of noticing it on your bill. 

Also many credit card thieves work by immediately changing the address to which your bill is sent. This is so that they are received at an address where they can endorse the additional stolen cards they have applied for. 

Finally, fixing up your credit report after it has been damaged by fraud can be a long and arduous process. Sometimes you have to pay in excess of ten thousand dollars to persuade your lenders and the credit bureaus to get the black marks off of your report. Unfortunately it is also very fatiguing and exhausting, as studies have shown that it can take on average about 600 hours and over a decade to finally undo all of the damage done by a case of credit card fraud.

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