The name of a person is discovered in official records and is used to identify him or her. As a result, if you alter the spelling of your original name, you must update all of the locations where it matters with the new spelling. This must be done in order to avoid any confusion or issues with the lender in the future. If you've just altered the spelling of your name and are concerned about the impact on your credit history, this article will help.
Unfortunately for those seeking a fresh start, name change does not erase a bad credit score or wipe out your existing credit report. Your old credit report is simply updated with your new name.
Notification to CIBIL (Credit Information Bureau of India Limited)
If the borrower has been responsible with their credit history, paying off their existing debts on schedule, it is critical that they immediately notify credit bureaus like CIBIL of their Name Change India. The borrower can send them an email about it so that the borrower’s name is changed as soon as the borrower’s name changes for reasons best known to them. Alternatively, individuals can file a dispute with CIBIL and other credit bureaus using their official web portals, informing them that a name change is necessary.
It should be emphasized that when a borrower writes to CIBIL or files a dispute about a name change, some vital documents must be submitted as proof of the change. They’re –
- Your entire name at the moment.
- Your full name as it appears on the bank or lender’s records.
- As per the registrations, your current address.
- Your Aadhaar Number in case it is linked to the loan account.
Name change proof is similar to any other legal document indicating a name change. This might be anything from a divorce settlement to a court document or even a marriage certificate.
Impact of the Delay
It can be misleading for the bank or lender if there have been major changes to your name. It’s also possible that you’ve made a mistake in your identity. In rare situations, this may result in a change to your CIBIL report, leaving you with the credit obligations of someone else. As a result, make sure you notify your creditors or bank as soon as possible about your name change. Only tell them about the name change after you’ve finished the process on your end. Following up with the credit bureau once you’ve completed all of this is essential. This will ensure that your credit bureau changes the spelling of your name in its records. Once you’ve completed this, you won’t have any further issues when applying for new credit.
Double-Checking Your Credit Score After a Name Change
It’s critical to double-check your credit report for mistakes. After you’ve changed your name, this becomes much more important (the spelling or the surname). After notifying the credit bureau and the lender of the change, you must wait a month before requesting a copy of your credit report. You can see if the credit bureau has changed the spelling of your name in this report. Your credit report determines whether you are eligible for a loan or a credit card. Due diligence is required of banks. Before issuing a loan, the Reserve Bank of India requires due attention in verifying your credit report. As a result, you must keep your credit report current.
In a word, changing the spelling of your name or even your last name after marriage or divorce has no bearing on your credit/CIBIL score. What you must realize is that you must be proactive and notify your lender of any change, as this information is also sent to the credit bureaus.