What happens to your credit history when you change the spelling of your name?

29-Mar-2017 written by : FSI-Team

You are identified by your name in every official record. Thus, when you change the original spelling of your name, you need to go through the exercise of updating your name in every place it matters to avoid trouble and confusion at a later date with your lender. If you have recently changed the spelling of your name and are wondering what impact it will have on your credit history, here we are with some relevant answers today.

To cut a long story short, changing the spelling of your name or even changing your last name because of a divorce or marriage does not have any impact on your credit history or your CIBIL rating. This is because, when you go through a name change, you are expected to notify your bank, which then updates your personal information along with the relevant documentation. Thus, when you inform your lender about any such name change, even if it only the spelling of the same, the updated information is passed onto the credit bureaus and your records are modified automatically and your CIBIL score remains intact.

That having said, there is no guarantee that the information update will be made immediately. This in turn may serve as an impediment and cause some confusion in identification that may in turn delay the process of your application for credit when a prospective lender carries out a credit check to assess your credentials. It is thus prudent to be proactive and notify the credit bureau yourself. Here's how to go about it:

Notify CIBIL yourself

If you are conscientious user of credit, you already know by now that you need to make a constant effort at improving CIBIL score and carry out a CIBIL score check from time to time. To ensure that there is no delay in CIBIL updating your personal information, you can write to CIBIL yourself and inform them about the change. Alternatively, you can consider raising a CIBIL dispute and point out that you need a rectification in the spelling of your name.

Include relevant details

Whether you write to CIBIL yourself or raise a dispute, you will be required to support you claim with the relevant details. In case of a name change you must notify CIBIL about the following:

  • Your full name now
  • You full name as registered with your lenders previously
  • Your full address as registers
  • Your Aadhar number if it is linked to your loan account
  • Proof of name change- Legal documentation indicating the same. This may include a marriage certificate, a divorce settlement or a court affidavit if you have changed the spelling of your name on your own accord.

Impact of a delay

If your name has changed significantly, it may be misleading for the lenders as well and there may even be a case of mistaken identity. This may also lead to alteration in your CIBIL report in rare cases where you may be stuck with somebody else’s liabilities. Therefore, make sure that you have notified the bank and your creditors about the name change at the earliest, once the process of the name change has been completed at your end.

Once you have done that, be proactive by following the above-mentioned steps. This will also lead to the credit bureau to update records at its end with immediate effect. This means that the spelling of your name will not pose a problem if you wish to apply for a fresh line of credit soon.

Check your CIBIL report

You probably already know by now that it is of utmost importance to carry out a CIBIL score check to scout for errors periodically. This is especially relevant when you have changed the spelling of your name. Once you have notified your lenders and CIBIL wait for a month or so and request for your CIBIL report once again to see if the rectified spelling is now being reflected on your report. Once you are sure that this is done you can heave a sigh of relief!

Your credit report is an important document in this day and age as it can decide your fate when you apply for any line of credit. By the diktat of the RBI, the central banking authority of India, it is now mandatory for a bank to look at the credit report of an individual as a part of their credit assessment process.

It is thus very important for you to ensure that all the records on your CIBIL report are up to date, as it will then ensure that you get access to cheap and timely credit when you are in need of the same. Checking your CIBIL report bi-annually including a free CIBIL check online (that is allowed once a year)is highly recommended to ensure that unwanted errors and discrepancies do not creep into your report, thus hampering your chances of availing fresh credit.



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