Name Changes & Their Effects on Credit Scores

Incomplete Records

If you use different names on your bank accounts, credit applications and other financial documents, your credit score may not reflect your full financial situation. The three major credit bureaus do have details other than your name, including your Social Security number. However, not all financial institutions report all your details. As a result, the credit bureaus may create more than one file, each with one of your names. Each file would only contain a slice of your financial information.

Problems with Loans

When you apply for a loan, your lender may pull up your credit score from the credit bureaus. If the bureaus maintain more than one file on you, the lender will only see one file and think it represents your entire financial situation. This means that the credit record does not reflect your hard work at maintaining a good credit history. As a result, you may find it more difficult to get a loan with good terms.

Fraudulent Red Flag

The inaccuracies in your credit record can lead to details not matching. The data that the credit bureaus maintain may not be the same as the data your creditors have. This may raise a red flag about a potential fraudulent activity, which may start an investigation on you and make it difficult for prospective lenders to access your financial details. This may cause delays with your loan applications.

Notification

You can prevent inaccuracies and incomplete data from getting onto your credit reports by providing proper notification of your name change. You should call each of your creditors, and write down the name of the person you speak to and the time of the call. You also should follow up with a letter to each creditor. Depending on the creditor, you may have to provide documents related to your name change. After proper notification, the credit bureaus should add your new name as an alias on your credit record so you only have one file.