How Does a Name Change Affect Your CIBIL Score

Your name and photograph are the most important details mentioned in your proof of identity. Even though your photograph may get updated from time to time, there are rare occasions when you have to change your name or correct the spelling. But when you change your name, add or modify your surname after marriage or correct the spelling of your name, you have to get it updated in all official documents to avoid issues in future.

Any modification in your name can also lead to confusion in your mind whether this step can impact your credit score or not. This article delves into how changing your name affects your CIBIL score and what you should do to avoid hassles in future.

How Changing your Name Affects your CIBIL Score

Any modification in the name’s spelling, title addition or removal has no impact on your CIBIL score and credit score from other credit bureaus. However, it is very important to get all documents updated as per your new name. You should then inform the lender or the credit card provider about your name change and provide the updated documents for updating details in all financial accounts.

It is noteworthy that even though there may not be any direct impact on your credit score but you may face some issues initially during the transition period, especially related to your credit accounts. There can be delays in credit reporting, misreporting, etc. It may also lead to a fall in your credit report, albeit temporarily.

To prevent any issues, you should also inform all credit bureaus about your name change so that they can take timely action to update your details in their database.

What to Do after the Name Change?

In case there is a change in your name’s spelling or otherwise, you need to first inform your banking partners about the same. Usually, once your lenders (banks) update your name in their records, the same is also reflected in your credit report/CIBIL report automatically. However, it is always a good step to inform the credit bureaus/CIBIL about the name change as well.

You may send emails to credit bureaus regarding the name change to avoid any error or delay. Alternatively, you can raise a dispute on the official website of CIBIL and other credit bureaus for rectification of your name.

People who are not adept in the credit ecosystem can take the assistance of the Credit+ program by Paisabazaar. When you avail the Credit+ service, our credit expert assists you in getting your name corrected with lenders and credit bureaus by raising a dispute with each institution.

Providing proof of name change and updated Aadhaar and PAN will make it easier for bureaus to assess your request and update it in their database at the earliest. In case you do not provide relevant documents, credit bureaus may ask for certain documents for verification, causing inadvertent delays.

Suggested Read: Found Error in Your Credit Report? Here’s How to Raise a Grievance

How Does the Delay in Notifying CIBIL Affect You

You should get the new name updated in all documents, proof of identity and financial instruments as early as possible. Any delay in notifying lenders, CIBIL and other credit bureaus may impact you temporarily.

• In case you have changed your name in PAN and Aadhaar, but your name in the credit bureau’s database is not updated, your new credit applications for credit cards or loans may not get processed.
• There may also be delays in updating your credit report as the mismatched details may prevent the lender from providing the latest information.
• The credit bureau may not update your latest score due to delays from the lender’s end. Even when the bureau receives the data, it may refrain from updating it, citing a mismatch in its database.
• It can get difficult, especially when you try to improve your credit score, as your corrective measures may not get reflected in your credit report.

Things to Keep in Mind while Changing Your Name

• Get your name updated first in the Aadhaar Card and then in PAN using the updated Aadhaar.
• Your details may not get updated with lenders if your new name in PAN is not updated.
• The new name is added to your CIBIL Report after notifying the lenders if you ever make any changes to your name.
• The change of name is reported to all credit bureaus and is updated with the new one, which remains in the credit history.
• You need to regularly follow up with the credit bureau to ensure that your new name is incorporated.
• Once your new name is incorporated in the records of CIBIL, there will be no delay in applying for a new loan or credit card.
• It may take up to 30 days to update the name in the credit bureaus’ databases.

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