Can change of last name impact credit rating?

Jayman21

Please can you advise with the question as I have asked earlier but never got feedbacks.

This question is related to a couple. A man has good credit rating but the spouse does not have a very good credit rating. Now married and the wife now needs to change her last name to the family name (i.e. taking up the husband's last name).

Now married they are both looking to get a house together (means applying for a mortgage together)

Question:

1. If she changes her last name to take up her husband last name will that have an effect on his or her or both their credit rating / history?

2. Is it advisable for both to still go ahead with a mortgage application knowing the wife credit is not very good or should the man apply alone?
Look forward to hearing your feedbacks

Thank you

Voyager2002

The change of name is unlikely to have any impact...

If they apply together for a mortgage, or any joint financial product, they become linked and the good credit rating is lost.

boo_star

Jayman21 wrote: »

Please can you advise with the question as I have asked earlier but never got feedbacks.

This question is related to a couple. A man has good credit rating but the spouse does not have a very good credit rating. Now married and the wife now needs to change her last name to the family name (i.e. taking up the husband's last name).

Now married they are both looking to get a house together (means applying for a mortgage together)

Question:

1. If she changes her last name to take up her husband last name will that have an effect on his or her or both their credit rating / history?

2. Is it advisable for both to still go ahead with a mortgage application knowing the wife credit is not very good or should the man apply alone?
Look forward to hearing your feedbacks

Thank you

1) No impact, it'll just be shown as an alias.

For example A Smith, A B Smith and A Green will be shown to lenders as aliases of A Smith (or vice versa.)

Can the man get the mortgage on their own credit? It may be better to not link them but it really depends upon the exact circumstances.

The_Boss

*tries to resist posting "you don't have a credit rating" but fails miserably*

StuC75

But you dont need to post that since its all over your signature..

Its not the name change that would have the detrimental impact on how a lender would credit rate someone, but the linking \ joint application that would be made would weigh up each parties background..

Mortgage applications would ask for details of all people that would then live in the house, so may question why the wife isn't counted, or treat her as a dependent from a financial position..

What exactly is the problem with the wifes rating?

The_Boss wrote: »

*tries to resist posting "you don't have a credit rating" but fails miserably*

Jayman21

@Voyager2002 @boo_star @StuC75: Thanks you for your feedback. It is now clear to me. Changing wife's name will not have an impact on the man with good credit but once they both take on a joint application for credit or loan that is where the impact arises. The man loses the good credit he has.

@The Boss: Thank you for your response. It is clear different loan/ mortgage provide asses people different hence I must not consider what one lender has said as final.

It is not clear to me what you mean by:

*tries to resist posting "you don't have a credit rating" but fails miserably*

Are you able to explain further?

It appears it may be better / more secure for the man to get the credit / mortgage on his own but "StuC75" has asked a very important question which is:

Mortgage applications would ask for details of all people that would then live in the house, so may question why the wife isn't counted, or treat her as a dependent from a financial position..

How do you handle this? because surely the adviser will ask about the wife and why she is not included on the application? is there a way around this?

SuperHan

The_Boss wrote: »

*tries to resist posting "you don't have a credit rating" but fails miserably*

Well.. You do.. You don't have a credit score, but you will have a general rating.


If you have lots of defaults etc, it'll be low.

If you have managed credit well, it'll be higher.

How it's interpreted by lenders will vary by lender, but if you can only get subprime credit, it's safe to say it's low. If you get low limits with mainstream lenders, it's middling and if you can get high limits with rewards then it's probably good. It's just not objective and absolute

Jayman21

Jayman21 wrote: »

It appears it may be better / more secure for the man to get the credit / mortgage on his own but "StuC75" has asked a very important question which is:

Mortgage applications would ask for details of all people that would then live in the house, so may question why the wife isn't counted, or treat her as a dependent from a financial position..

How do you handle this? because surely the adviser will ask about the wife and why she is not included on the application? is there a way around this?

Thanks SuperHan for the explanation. Anyone able to help with further advise on how to go about mortgage application given this scenario (in quote)?

SuperHan

It depends on what they are willing to lend you alone, as they will only assess one income which will restrict your lending massively.

It also depends how 'bad' her credit it is. A few late payments in the past probably won't impact you so much, but a lot of defaults and CCJs will have a much bigger effect.

It's probably best to go and speak to a specialist mortgage broker, as they will know who lends to what sort of credit rating, and they will be able to advise better knowing the full scenario (e.g. both of your salaries, the exact nature of her credit rating)

Jayman21

@SuperHan Thanks