What happens to the Credit History when you make changes to your name’s spelling?
An individual is identified by his/her name found in the official records. So, when you make changes to your original name’s spelling, you must go ahead and update that new spelling of your name in all the places where it matters. This must be done so that you do not face any confusion or trouble later with the lender. In case you changed your name’s spelling recently and thinking how it can have an effect on the credit history, this article will provide you with some useful insight.
To cut to the chase, changing your name’s spelling or even changing your surname after marriage or divorce has no impact on your CIBIL rating or credit history. When you name is changed, it is expected that you will go ahead and inform your bank about it. In turn, this will ensure that your personal data and documents are updated accordingly. So, when you update the bank or the lender that you have updated your name’s spelling or the surname, that information goes to the credit bureaus too. The records get automatically modified and the credit score remains the same.
However, the data might not get updated instantly. This can surely create some confusion and you might face some delay when you make an application for a new credit as the lender will not be able to assess all your credentials properly. It is of utmost importance that you notify the credit bureau, proactively.
You must notify CIBIL:
In case you are a careful credit user, you must already know that you must constantly improve your credit score. CIBIL check must also be carried out often to keep a track of your credit report. You can write to CIBIL to ensure that there is no delay from CIBIL’s side in updating your name’s spelling or surname. You may also choose to raise a CIBIL dispute and state that you need your name’s spelling to be corrected.
You must include important details:
Whether you raise a CIBIL dispute or write to them, you must provide the following details in support of your claim:
- Your current full name.
- Your full name that is registered with bank or the lender.
- Your complete address as per registers.
- Your Aadhaar number in case it is linked to the loan account.
- Name change proof like any legal document indicating the change in name. This can include divorce settlement, court affidavit or marriage certificate.
Impact of the delay:
In case there has been significant changes made to your name, it can be misleading for the bank or the lender. There can also be a case of identity mistake. In rare cases, this might lead to CIBIL report alteration where you might stuck with a different individual’s credit liabilities. Thus, ensure that you have informed the creditors or the bank about the change of name as soon as you can. You must only inform them about the name change after the name change process has been completed at your end. Once all of this is done, you must be proactive in following up with the credit bureau. This will ensure that you credit bureau updates its records by changing the spelling of your name. Once this is done, you will not face any more problems when you apply for a new credit.
Check the CIBIL report:
You must be knowing already that checking your CIBIL report for errors is of utmost importance. This becomes even more necessary after you have changed you name (the spelling or the surname). After you have informed the credit bureau and the lender about the change, you must wait for a month and then send in a request for a credit report. In this report, you can check if the credit bureau has updated the spelling of your name or not. In times like these, the credit report is an extremely important document. It is highly responsible in determining if you are eligible for a loan. As per the regulations set by the Reserve Bank of India, all banks must check the credit report of an individual before his/her loan request is accepted. So, it is very important for any individual to keep his/her credit report up to date.