One of the most significant pieces of information your credit report includes is your name. When it comes to your credit score, it is your identity that helps lenders to recognize you. You will be linked to the other information in the credit report, such as your previous loan and credit card payment history, so your name must be correctly spelled and any changes in your name (post marriage) should be included in your bank records. Therefore, in all your essential official documents, such as identification documents like your passport, voter ID, Aadhaar card, etc., you need to update your correct name. Based on records such as the credit report, which should include the original name along with the proper spelling, lenders decide to sanction your credit. If your spelling is incorrect, as far as the lender is concerned, there will be a lot of misunderstanding and this might hinder the application process for the loan. We’re going to try to explain how changing one’s name will influence their credit history here.
DOES CHANGE MY NAME IMPACT MY CREDIT SCORE?
What you need to remember is that it has no effect on changing your name as far as your credit rating or credit history is concerned. Since the documents apply to you, however. Therefore, immediately after the update, you must disclose to your creditors the new spelling of your name or your last name after marriage or divorce. Within a given time period, the banks will then update your personal details and all related documents. When you notify your bank of your change of name or surname, this update is also issued by the corresponding bank to the credit bureau. There is no difference in your credit score when your records are updated automatically.
You need to note, however, that this data alteration does not happen immediately. When you apply for fresh credit, there will be some initial uncertainty and delay in the processing of your loan by the lender. This is because the documents are already in the process of being revised and the lender is unable to access them. So, one of your significant duties is also to intimidate the credit bureau.
WHAT SHOULD I DO IF MY NAME HAS BEEN CHANGED?
If your name has been amended recently, there is a certain course of action that you need to pursue. Highly relevant are the following points:
- You Need to Notify CIBIL About Your Name Change
If you have been careful with your credit history by paying on time for your unpaid loans and credit card payments, you must notify CIBIL of your change of name at once. As for the change in your name, you should contact them so that there is no delay in changing your new spelling or surname after marriage or divorce. On the other side, you may alternatively pose a dispute by telling them on the CIBIL website to correct your old name or surname.
There are some important documents that need to be given when you want to write to CIBIL or raise a dispute to include the new spelling of your name or your new surname, such as:
- Your current full name.
- Your full name has been registered with the bank or the lender.
- Your current address as per registers.
- Your Aadhaar number in case it is linked to the loan account.
- Proof of the name change, like any legal document indicating the name change. Your divorce settlement, court affidavit, or marriage certificate can contain this.
HOW DOES THE DELAY IMPACT YOU?
If major changes have been made to your name, the lender may be deceptive. A case of identity error may also be present. In extreme cases, because of this inconsistency in the name, there could be liability connected to a different person linked to the credit report. So, to prevent any confusion, any change in your name or surname must be communicated to the bank immediately. The name change must not be communicated until you have completed the whole process of changing your name. You need to follow up periodically with the credit bureau to ensure that your revised name is included until the name change process is complete and you have told your lender. You will no longer face any issues when applying for a new loan or credit card until you learn that your new name or surname has been inserted into the CIBIL records.
GO THROUGH THE CREDIT REPORT
It is of vital importance to review your credit report for errors. After you have changed your name (the spelling or the surname), this becomes even more important. You must wait for a month and then submit a request for your credit report after you have told the credit bureau and the lender about the update. You may verify whether or not the credit bureau has changed the spelling of your name in this report. Your eligibility is dependent on your credit report for a loan or credit card. When reviewing your credit report as per the regulations of the Reserve Bank of India before sanctioning a loan, banks must exercise due diligence. So, you need to stay up to date with your credit report.
In a nutshell, it has no effect on your Credit / CIBIL Score to change your name’s spelling or even change your last name after marriage or divorce. What you need to remember is that, since this information also goes to the credit bureaus, you need to be proactive and notify your lender about this change.