Does a Name Change Affect Your CIBIL Score

Sometimes, people decide to change their name, such as after getting married or if there's a spelling mistake on official documents. If you've recently changed your name, it's a good idea to update it on all your official documents to avoid any confusion about your identity.

Read More to Know When you change your name in your CIBIL report, it's important to understand its impact on your CIBIL score:

How Changing your Name Affects your CIBIL Score

Changing your name  doesn't affect your credit history or CIBIL score. This is because factors like repayment history, recent credit inquiries, length of credit history, and credit utilization ratio determine your score. However, your name is crucial in your CIBIL report as it identifies you. It's important to inform lenders or card providers promptly once you've updated your name on official documents like Aadhaar and PAN cards.

If you change your surname due to marriage or divorce, or if there's a spelling change in your name, it's important to inform your lenders (banks) promptly. They will update your personal details and relevant documents within a specific timeframe. Additionally, banks will notify credit bureaus about the name change. While your personal data is updated by banks and credit bureaus, your credit score remains unaffected.

You must notify CIBIL:

However, it's crucial to notify banks and credit bureaus promptly about any name changes to avoid delays and confusion when applying for new credit. Loans are approved based on your credit history and score, so having the correct name on your credit report is essential.

What Should I Do If My Name Has Changed

If there's a change in your name, whether it's a spelling error or for another reason, the first step is to inform your banking partners. Typically, when your lenders (banks) update your name in their records, it's automatically reflected in your credit report/CIBIL report. However, it's a good practice to also inform the credit bureaus/CIBIL about the name change.

You can notify them by email to prevent any delays. Additionally, you can raise a dispute on the official website of CIBIL (credit bureau) to correct your name. When contacting CIBIL or raising a dispute, you'll need to provide certain details, including:

1. Your current full name
2. Current residential address
3. Full name registered with the bank or lender
4. Your Aadhaar number if linked to the loan account
5. Proof of name change, such as a marriage certificate, etc.

Impact of the delay:

If significant changes are made to your name, it can cause confusion for the bank or lender and even lead to identity mistakes. In rare cases, this might result in alterations to your CIBIL report, potentially associating you with someone else's credit liabilities. Therefore, it's crucial to inform creditors or banks about any name changes promptly after completing the process on your end.

Once you've informed your creditors or banks, it's essential to follow up with the credit bureau proactively. This ensures that the credit bureau updates its records with the correct spelling of your name. Once this is done, you shouldn't encounter any further issues when applying for new credit.

Things to Keep in Mind before Changing Your Name

When you notify lenders about a change in your name, the new name is added to your CIBIL report. This change is reported to all credit bureaus, and the new name replaces the old one while the old name remains in your credit history. It's important to regularly follow up with the credit bureau to ensure that your new name is correctly incorporated. Once your new name is updated in the CIBIL records, there should be no delay in applying for a new loan or credit card.

However, it's essential to note that it may take up to 30 days for the name update to be processed and reflected in your records.