Does a Name Change Affect your CIBIL Score?

It’s no secret that your name is one of the most important details that your credit report requires. And it is something lenders rely on to identify you when it comes to your CIBIL or credit score. But sometimes people choose to change their names or surnames, typically after marriage or when the name is printed wrong due to spelling issues. 

However, if you have just altered your name and are worried about the impact of the same on your credit history or report, Read on. 

Can a name change impact my CIBIL or Credit Score?

Well, the good news here is: that a name change can’t really affect your credit or CIBIL score. However, since it involves you, you must make sure to inform the bank about the change and ask them to make the necessary modifications. Further, the bank on their part will take the required steps. 

But you can’t really expect the modifications to take place right away as it involves a lot of paperwork. Initially, there will be some confusion and delay in approving your loan, in case you have approached the bank with a fresh one. 

Notifying the CIBIL about your name change

When you change your name, it is your responsibility to notify the CIBIL. You can either mail them regarding the name change or you can raise a dispute for rectifying errors in your name. 

Whatever you choose to do, you must provide the following details-

• Your current name in full
• Full name registered with the bank
• Your current full address
• Your aadhaar number if it is linked to your loan account
• Any legal document as a name change proof

How does the delay affect you?

Your name is your first identity followed by the supporting documents related to your name. So if your name has undergone any sort of changes, it can get confusing for the lender and lead to an error of identity. In rare cases, there might be liabilities relating to a different person linked to your credit report due to this entire name change scenario. Therefore, any modifications in your name or surname must be informed to the lender as soon as possible. Also, you must keep in mind to inform about the change of name after the complete process of the same is done. Once it’s done, you need to follow up with the credit bureau. 

When your new name or surname has been successfully incorporated into the CIBIL records, you will no longer face any issues. 

Check your credit report

Checking your credit report to identify errors is crucial. This is even more important after your name has been altered. Once you have informed the credit bureau and the bank about the change, you must wait for a month at least and then request your credit report. As soon as you get the report, go through it and see if your new name or surname has been updated. 

Your credit report determines your eligibility for a loan or a credit card. Reserve Bank of India requires banks to check the credit report of an individual before sanctioning him/her a loan. So, it is your responsibility to keep your credit report up-to-date. 

Things to keep in mind

• If you ever make alterations in your name or surname it is incorporated in your credit or CIBIL report only after informing the lenders. The new name is communicated to all the credit bureaus while the old one continues to remain in your credit history. 
• Make sure to regularly follow up with the credit bureau to ensure that your CIBIL report has been modified with your new name. Once your name has been updated, you can easily get your loan or credit card applications approved. 
• The procedure may involve a total number of 30 days or a month to be precise. 

Summing it up

By now it must be clear to you that a name change can’t impact your CIBIL or credit score; however, it can lead to a lot of confusion. Remember, a change of name is a complex matter and it involves several legal supporting documents such as a marriage certificate, divorce decree, etc. 

Check with the banks or the lenders to learn about all the formalities required to get your name modified in their records. Once you have a clear picture of what has to be done, apply for the change of name along with supporting documents. Also, fill out the forms given by banks carefully so that there are no errors in the details of your name. Next, wait for the updated bank statements to find out if the changes have been made. Once your details have been updated, you need to follow up with CIBIL. Additionally, do not forget to raise a dispute to ensure that your records are updated. 

When you find out that the CIBIL records have been successfully updated, go ahead and get your loan approved.