Does Changing Your Name Clear Your Credit History?

Changing your name is a major milestone in life, whether it’s due to marriage, divorce, or just wanting a fresh start But what happens to your credit history when you change your name? Can you erase bad credit by changing your name? Here’s what you need to know.

Your Credit Reports Go By More Than Just Your Name

When you change your name, your credit reports don’t just magically reset. Credit reporting agencies like Experian, Equifax, and TransUnion use more than just your name to identify you. The key identifier is your Social Security number, which stays the same even after a name change.

So while your name might change the accounts tied to your Social Security number remain the same. A name change does not clear your credit history.

How Credit Bureaus Handle a Name Change

When you legally change your name, you need to report it to creditors like your credit card company, student loan provider, mortgage lender, etc. They will then report your new name to the credit bureaus.

The credit bureaus will add your new name to your credit file, but won’t remove your old name or any accounts tied to it. So your credit reports will show both your previous name(s) and new name.

A name change also won’t result in a brand new credit file being created for you. Any late payments, collections, or bankruptcies under your old name will still be factored into your credit score calculations under your new name.

Steps to Report a Name Change

Follow these steps to make sure your name change is properly reported:

• File the legal name change paperwork in your state. Contact the courthouse for specifics.

• Get an updated Social Security card showing your new name.

• Change your name on IDs like your driver’s license, passport, etc.

• Contact all creditors and financial accounts to update them with your new name. Provide any documentation they require.

• Check your credit reports a few months later to verify your new name is listed. Dispute any errors.

When a New Credit File Could Be Created

In some cases, a name change could result in a new credit file being created that won’t include your previous credit history. This could happen if:

• You change your name but don’t properly update creditors and the credit bureaus. They may think you are a different person.

• You change your gender along with your name. If not updated properly, a new file could be created.

To avoid having a thin or non-existent credit file under your new name, work closely with creditors and credit bureaus during the name change process. Make sure your accounts get updated and not just closed or removed.

Impact on Your Credit Score

A name change alone will not directly affect your credit score either positively or negatively. But if you don’t manage the name change process carefully, it could result in errors or a new thin credit file that hurts your credit.

To keep your score intact, be proactive in reporting your name change and checking for errors afterwards. Also continue practicing good credit habits like paying bills on time under your new name.

When a Name Change Is Reported on Your Credit Reports

Even when done properly, your credit reports will still show your previous name(s) and any accounts tied to them. Accounts you open after the name change will start being reported under the new name.

For example, let’s say your credit report includes:

• Credit card from 2015 opened under name “Jane Doe”

• Student loan from 2017 under name “Jane Doe”

• Mortgage from 2022 under new name “Jane Smith”

This shows the transition from your old name to new name on your credit reports. While inconvenient, it’s important to have your full credit history accessible under your new identity.

Tips for Managing Credit During a Name Change

To make the name change process as smooth as possible:

• Legally change your name first and update IDs.

• Notify creditors second and submit any required docs.

• Check credit reports a few months later to verify updates.

• Consider waiting to apply for new credit right after changing your name. Lenders may get confused by the recent updates.

• If you have no credit history under new name, ask lenders to review history under old name too.

• Continue practicing good credit habits like paying bills on time to keep score intact.

Special Case: Name Changes Due to Marriage

When you change your name due to marriage, the process is fairly straightforward:

• Update your name on financial accounts using your marriage certificate.

• Joint accounts can be updated to new shared marital name.

• Your individual accounts can retain maiden name or change. Up to you!

• Check credit reports after 3 months to ensure proper updates.

• Your credit score will not be affected by a marital name change.

The Takeaway: Your Credit History Stays With You

While our names can change, our financial histories cannot be easily erased. A name change does not automatically clear your credit reports and credit score. Those are tied to your SSN rather than your name.

So if your goal is improving your credit, the name change itself accomplishes little. The hard work comes from consistently paying bills on time, keeping credit card balances low, monitoring your credit reports, and practicing other healthy credit habits.

Your credit belongs to you, no matter what name you go by!