Same Lender, Different Name: How Name Changes Affect Your Credit Report

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Same Lender, Different Name: How Name Changes Affect Your Credit Report

By CHARMAINE NG

Sometimes, a company is in the market for a new identity. They might agree to a merger or rebrand themselves as something else entirely. Although this decision might generate some publicity, you may not even realize that a service you use is undergoing a transformation. Then suddenly, you receive a credit monitoring alert that an account has changed on your credit report. What's going on?

The Scenario

When a company, like your creditor, is purchased or renamed, your accounts may be transferred to a new entity or appear with the creditor's new name. These types of corporate changes can sometimes result in some adjustments to your credit report. The nuances of credit reporting are tricky, but you may see your original account's tradeline has closed and a new tradeline with the original account's open date, balances and other details has appeared under your creditor's new name. Alternatively, your original account might not be reported as closed at all, and may simply be updated to reflect the creditor's name change.

Next Steps

Now that your lender has officially changed names, you might be wondering what's left to prepare for.

As with any changes that are being made to your report, keep an eye out for any possible errors by checking your credit report regularly. If something goes wrong during the company's transition, you could see mistakes pop up on your report, like the wrong credit limit or open date. Unchecked inaccuracies like these could affect your credit score. If you notice an error, consider contacting the creditor directly or filing a dispute with the credit bureaus to see if you can correct the misinformation.

Along the same lines, if you notice that your creditor has changed names, you may want to pay close attention to any communications from your creditor. They might email you updates or include important information on your billing statements about any other changes that have occurred.

Now, if you're wondering if you should expect a change to your credit score, the answer is probably no. If all other details of your account have remained the same, a creditor name change shouldn't affect your credit score all by itself. If your score drops around the same time your lender changes its name, it's likely some other change to your report has caused the decrease, or that other details on your account have changed in addition to your creditor's name.

Takeaways

If you have any questions about how this kind of transition will impact you on an individual level, contact your creditor for more clarification on the process. They'll be able to give you the best guidance possible since corporate changes can occur in different ways and every creditor might handle the situation differently. When it comes to your credit report, your lender changing its name may result in some new information, but it generally won't rock the boat too much.

About the Author: Charmaine Ng is the Communications Coordinator at Credit Karma. When she isn't writing her way through life, you can find her reading about the latest in entertainment and watching television almost every night of the week. Say "hi" @noodlemaine!

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All Comments

Results 1-10 of 57Results per page: 5 | 10 | 25Page 1 of 6   Previous | Next
2 Contributions
73 People Helped

Helpful to 72 out of 79 people

Sallie Mae change their name/ sold account to Navinet and now my credit score fell by -26 points! It's not even my fault! Makes no sense. Smh

Reply by
2xCheck

1 Contribution
29 People Helped
Helpful to 29 out of 34 people

Sallie Mae/ Navient switch dropped me 56 points for my 5 student loans. I will call/ email, because I just spoke with a person this past week due to consolidating my loans. He stated that I don't owe anything quite yet, adn could go on deferrment untilt he consolidation completes. Very odd indeed. Though double checking is necessary.

Reply by
GaryBrown83

1 Contribution
5 People Helped
Helpful to 5 out of 5 people

Exactly. That change affected my credit to the point where now I am not approved for my dream car that I've been saving for. It's not fair cause I've done nothing wrong!

Reply by
Llowe659

2 Contributions
45 People Helped
Helpful to 45 out of 49 people

I just noticed my credit dropped 11 point for the same reason. I don't understand if only the name changed why is my credit score dropping?

Reply by
mhetrick

5 Contributions
6 People Helped
Helpful to 1 out of 1 people

I have 3 Sallie Mae now Navient loans.  My score dropped 9 points because of the name change.  Here's what they even say on their website about the name changes.

https://www.navient.com/about/who-we-are/navient-loans/faqs/

How will the company separation impact my credit?

If you have active loans with Sallie Mae and Navient post separation, your credit report will now reflect two separate creditors — Sallie Mae and Navient.  This change will not impact your credit score.

How will Navient serviced loans be reflected on my credit report?

If you have loans serviced by Navient, you will see a name change from Sallie Mae to Navient.

For loans paid-in-full or transferred while serviced by Sallie Mae, there will not be a name change reflected on credit reports.

Reply by
Achen0629

1 Contribution
0 People Helped

When Sallie Mae changed their name my credit score dropped by -55 points! Makes no sense at all

Reply by
midnightclover

2 Contributions
0 People Helped

My score also went down -26 points due to Sallie Mae name change!!!! I don't understand this at all! I'm trying to buy a house!!!!!

Reply by
EllaBooNYC

3 Contributions
2 People Helped
Helpful to 1 out of 1 people

Mine, too. -19 points for student loans transferred from Sallie Mae to Navient. So very WRONG!!!

Reply by
tstrawder

1 Contribution
3 People Helped
Helpful to 3 out of 3 people

My score dropped -36 points!!! I called Navient to dispute this, now I have to send them a copy of my credit report and a letter explaining my reasoning for the dispute!

Reply by
snapdogg

3 Contributions
21 People Helped

cap One just changed to Capitol One, and my score dropped 42 points. This is ridiculous. Unbelievable.

Reply by
BBMJG17

2 Contributions
0 People Helped

Yup... same thing.. Navient... and when JCPenney credit was bought by Synchrony bank, my history was affected since JCP was my second card and I've had them since 2003.  the name change doesnt affect you, but it makes it look like you opened a new account!  Now Capital One went from Capital One to Cap One.. really?  I bet I will have to pay for that, too.  

Reply by
wyliem

1 Contribution
0 People Helped

they count as a new account so that your credit balance increases the amount of that account. not fair it's not like you got anthing new out of it.

1 Contribution
24 People Helped

Helpful to 24 out of 24 people

I am not sure why I am seeing a 35 point drop in my credit due to this name change of Sallie Mae to Navient.  This is not even right and I am in college so my loans are in deferment untill I graduate. Someone needs to fix this matter right away. I have worked way to hard to build my credit back up for a name change to drop me 35 points.  I would like answers to this mater right away and a phone number to call. We should not be penalized for something we have no control over.  

1 Contribution
21 People Helped

Helpful to 21 out of 21 people

My score through another bureau has already dropped over 20+ points since Navient/Sallie Mae change.  The change was just added to my credit Karma I hope it doesn't reduce this one too

2 Contributions
19 People Helped

Helpful to 19 out of 21 people

So the author says that just because the name changed doesn't mean our score will change, it's coincidence? But there is nothing new on my credit and the only change being the new navient name, which caused an -8 point drop on my score!

oh and btw, Im on deferment till Jan 2015.

im going to call BS on that, SO WHO DO WE CALL>? I guess ill try calling navient?

Reply by
Williamwith3kids

2 Contributions
19 People Helped
Helpful to 0 out of 1 people

oh and  (800) 722-1300 is the number to navient

Reply by
maiacam09

2 Contributions
14 People Helped
Helpful to 14 out of 14 people

let us know if that works because if I have to I will call them and complain as well.  I think I will shoot them an email and see if I get a response.  I am on forbearance until April 2015 and my score dropped 30 points!  I have nothing else going on with my credit either other than it has been slowly increasing because I have been working so hard to increase it.

Reply by
Vposey79

3 Contributions
14 People Helped
Helpful to 13 out of 15 people

Thanks Williamwith3kids' I called that number and spoke with an Rep. They advised to send in my Credit Report that showed them the drop in my score with seperate page stating my concern for my reason.  Thanks Again

Reply by
maiacam09

2 Contributions
14 People Helped

If your credit score has changed already, how is sending in a copy of your credit report going to show them that it is because of their change of name that caused your credit score to drop? They told me the same thing and I just don't see how that is going to help. I can see contacting the credit agencies and how that could possibly help, but they still go by what companies report to them. This is all a bunch of bs. They are reporting a zero balance on my loan right now. I am not sure when they will be reporting the true balance...I'm sure it will be at their convenience though.

Reply by
levi2245

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

I went to 604 when Sale Mae changed to Nevient I am screwed to get a loan to pay off my loan. Not fair if you ask me.

1 Contribution
17 People Helped

Helpful to 13 out of 13 people

This whole credit reporting agency methodology is an enterprise that ought to be brought to justice by the people whose financial harm is treated as if they are completely unaccountable.    Changing one's credit score because their financial institution has reorganized or changed names due to mergers or other corporate strategies is absurd.   Downrating one's credit score because they have achieved a measure of financial success and independence based on responsible, frugal habits and behaviors over a lifetime (50 years or more) is outrageous.    Because I own my home outright, and have owned my own homes outright for the past 30 years, have not resorted to financing a vehicle purchase since I paid off my first of 11 new cars over the past 40 years, and limiting my use of credit cards to five, I find that Trans Union has, in their infinite wisdom developed alogorithms that deem me to be at medium risk for filing an automobile insurance claim.    So who is worse, the companies who utilize this ludicrous conclusion based on secret criteria, or the haphazard lumping of people whose lack of borrowing because they cannot secure home mortgages.    People who don't  buy or finance a car because they cannot afford the down payment?   I find myself grouped and rated in the same "risk" category with such irresponsible or unfortunate people, though I have the financial resources to buy any car on the market, or any home I choose without resorting to borrowing the money to pay for them.    No wonder so many U.S. citizens have lost all faith and respect for U.S. financial institutions that have amply failed to make rational assesments of risk while billions are "lost" on bad bets, leaving honorable, responsible, frugal and zero risk individuals to suffer the consequences resulting from the secret world of credit rating agencies.   Time to face the fact, our country is in decline and this travesty of judgment and justice is simply the tip of the iceberg of irresponsible behavior inherent to the entire financial and financial services sector of our nation.

Top Contributor

Reply by
ernestf01

115 Contributions
1243 People Helped
Helpful to 1 out of 1 people

Thats the problem most of the lenders aren't USA based finacle institutions. They are international banks US government has been giving free money to for the last 20 years or buying up bad dept from small third and second world countrys. What gets me is giving a bank a bail out instead of just paying them off what you owe them as a government. Tells me our government is allowing america to be stripped mined. I mean get real 0.2 interest on 500k in savings but were charged as high as 29.99 to borrow. They say we owe the chinese but most of these lenders are out of england. The U.S.A. banks really aren't touching any one without a great score. Its like C.E.O. of barclays while back had a dude from a english owned bank come in and fire him. So that should say a lot of false fronts on some of these banks.

Reply by
Jamesmemo

1 Contribution
2 People Helped
Helpful to 2 out of 2 people

I agree, the Credit System needs major reform. It is currently part science and part scam. I hope Credit Karma can be more than a vehicle for selling new credit cards and help with the much needed reform. The credit system must be easy to understand and fair for people to have faith in the system, it's that simple!

1 Contribution
14 People Helped

Helpful to 14 out of 15 people

I also saw a 34 point drop on my TransUnion score and a 55 point drop on my Vantage score from the Sallie Mae to Navient name change. There were no other changes to my accounts so there is nothing else that could account for this extreme drop.

1 Contribution
2 People Helped

Helpful to 2 out of 2 people

The name on my cc changed from Chase to Chase Card and I dropped 8 points! That is rediculous. Very unhappy. I got this cc to help my score, not hurt it!

2 Contributions
11 People Helped

Helpful to 11 out of 11 people

Good, but that is not the reason the bank name was changed on my account.  In fact, Transunion says they didn't do it and Credit Karma says they didn't do it, but someone did it on 10'30/14.  Must be a ghost.

1 Contribution
7 People Helped

Helpful to 7 out of 7 people

My score dropped 8 points and my amount due went from $3000 something to double. I don't understand any of this. Help. I'm already broke. 

1 Contribution
7 People Helped

Helpful to 7 out of 7 people

My son informed me that his score dropped 34 point because of Sallie Mayes name change, I then checked my report and mine dropped 35 points. Something has to be done. Has anyone found out who to contact about this mess! We work to hard to increase and keep good credit. We should not be penalized for something out of our control. Smh!

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