Does a Name Change Affect Your Credit Score?

When you apply for a loan, your lender enquires about your credit score to decide on the loan terms and conditions based on your CIBIL score. If you are applying for a Home Loan, it is advisable to have the required score of CIBIL for a Home Loan.

Your credit score is calculated based on the details in your credit report, such as your past loan repayment history, the number of loans you currently have, the number of loans you have applied for, and your credit utilisation ratio.  

Apart from this, your credit report also contains personal information, such as your name, age, and address. This information helps credit bureaus to match the right credit report with the right person. It is, therefore, important to have accurate information on the credit report.  

How Does Changing My Name Affect My CIBIL Score?

Changing your name does not have a direct impact on your CIBIL score. However, when you change your name, credit information agencies find it difficult to fetch the right report in case of a CIBIL score enquiry, in case you do not update your name in CIBIL’s record. This way CIBIL may not be able to fetch the correct credit data associated with you. This way your lender will not have enough information on you to decide on your loan application and may reject your loan application.  

Also Read: 10 Reasons Why a Housing Loan Application May Be Rejected

What Should You Do After You Change Your Name? 

If you have changed your name, the first step is to inform your lender so that they can update your records accordingly. The lender will then communicate these modifications to CIBIL, ensuring your credit report reflects your new name. This process may take some time, so it is advisable to notify your lender promptly after a name change. 

Write to CIBIL to Speed Up the Process

If you want to speed up the process of having your name change reflected in your CIBIL score, instead of waiting for your lender to pass on the information to CIBIL, write to CIBIL yourself. To get your name changed in your CIBIL records, you can either write to CIBIL or raise a dispute with them. In either case, know that you will need to provide the following information in the letter you write to CIBIL or the CIBIL dispute form you fill out on their website. 

• Your full name

• The name that is registered with your bank 

• Your complete address 

• If you have changed your name recently, you will need to provide legal documents with your new name.  

After you have written to CIBIL, follow up with them regularly to make sure the changes are reflected in your report accurately and soon.   

Check Your CIBIL Report Often 

If you have changed your name, make it a point to check your credit score and credit report often to make sure all details in your CIBIL report are correct. Borrowers should, in general, check their CIBIL report at least once every six months for two reasons.  

First, if on checking your credit score, you find out that your CIBIL score is low and would not help you qualify for any type of loan, you will need at least six months to take the required corrective measures and for these measures to reflect on your CIBIL score. Second, if you see any errors in your credit report or if you have changed your name recently, know that CIBIL will take at least a few weeks to months to rectify these errors or changes in your name and for these changes to reflect in your credit report.  

Conclusion 

If you have recently changed your name, notify your lender and CIBIL promptly to prevent any discrepancies in your credit records. 

Also Read: Five Reasons Why a Low Credit Score Could Lead to Loan Rejection