What is a Credit Grantor?
A credit grantor is another term used to describe the source of your credit card or the company that provided you with a form of credit.
As your credit grantor, the credit card company can make many decisions regarding your account as outlined in your credit card agreement. They can increase or decrease your credit limit and interest rate. They can charge your account for certain transactions and may impose fees as a penalty if you are late on a payment. However, the credit grantor can also close your credit card account, sometimes without prior notice.
Why might “Closed by Grantor” appear on your credit report?
Most major credit card companies provide consumer account information to at least one of the three major credit bureaus, including details about your account’s open or closed status. “Closed by Grantor” may appear on your credit report when the credit card company closes your credit card instead of you closing your account yourself.
A credit card company may close your account for various reasons, including:
- You have been late on credit card payments
- The credit card has been inactive for a long time
- The credit card was replaced with a newer version
- The grantor detected fraud on the account
- You reported the card as lost or stolen
- The store you partnered with for the credit card has permanently closed
- The economic landscape has changed
- The grantor is going through liquidation
Credit reporting agencies require that only accurate information be included in your credit report. If your credit report indicates, for example, that the credit card company closed your account, but in fact, you were the one who requested the account closure, you can dispute the entry in the credit report. Include a copy of your credit card closure request and a certified mail return receipt proving that the grantor received your request.
If the comment is accurate, however, it will remain on your credit report for a specified period. If the account was closed with negative information, such as being charged off, it will be removed from your credit report after seven years.
Will the comment affect your credit score?
You may be concerned about how the comment indicating that the grantor closed the account will affect your credit score. After all, having a good credit score is crucial for receiving your credit card and other applications.
Happily, any comment indicating that the credit card company closed your account or the fact that the grantor closed your credit card (rather than you closing it) will not affect your credit score. Comments are not factored into your credit score. Only activity on your accounts is factored into your credit score.
Potential lenders often check credit scores rather than reviewing credit reports, as it is a quicker way to approve applications. The comment that your account was closed by the grantor may go unnoticed. In any case, it is usually not considered against you, especially if the rest of your credit report contains positive information.
Your credit score could be impacted by a closed credit card if you still have a balance on that credit card or if you have other credit cards with balances. Closing the account may also affect your score if it was your only credit card. If the account was closed due to late payments, the late payment delays will also impact your credit score.
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You may feel that your account was closed by mistake; you can contact your credit card company to inquire about reopening it. Otherwise, swiftly paying off any outstanding balance is the best way to protect your credit score.
Frequently Asked Questions (FAQs)
What is a credit grant in a rental application?
The landlord may request a credit grant in a rental application as a means to screen potential tenants. This is also known as a “credit reference.” It helps landlords ensure that applicants have previously been able to make timely payments with another grantor.
How can you remove an account after it has been canceled by the grantor?
Removing accounts from your credit report is not easy. If the report contains errors, you can dispute them, but credit monitoring agencies are not obligated to remove accurate information. Accurate negative information is automatically removed from your credit report after seven years. Bankruptcies may remain on your record for up to 10 years, as well as closed accounts with positive information.
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Source: https://www.thebalancemoney.com/what-does-account-closed-at-grantor-s-request-mean-960412
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