What Does ‘Account Closed at Grantor’s Request’ Mean?

There is a variety of information about your various credit accounts in the report that is kept on your credit. Your creditors may leave a comment on particular accounts, providing feedback regarding the current status of the account. While reviewing your credit report, you can discover that some of your closed accounts contain a remark that indicates "account closed at grantor's request" or "closed by grantor."

Who Is a Credit Grantor and What Do They Do?

Your credit card issuer or the business that has provided you with any type of credit may also be referred to as the credit grantor. This is simply another word for the issuer of your credit card. According to the terms of your credit card agreement, the credit card issuer, who also acts as your credit grantor, has the authority to make a variety of choices regarding your account. They have the ability to increase or decrease both your credit limit and interest rate. They have the right to deduct fees from your account for certain transactions, and they also have the right to deduct fees as a punishment for payments that are made late. Your credit grantor, on the other hand, has the authority to close your credit card account at any time, even without prior notice.

The Reasons Behind the Notation "Closed by Grantor" on Your Credit Report

The majority of major credit card issuers submit information about their customers' accounts to at least one of the three main credit bureaus. This information may include specifics regarding the open or closed status of your account. When your credit card issuer closes your account, as opposed to when you do it yourself, "Closed by grantor" may appear on your credit report. This is in contrast to when you close your own account. Your credit card company could terminate your account for a variety of reasons, including the following examples:

You are now far behind on your credit card payments.
The credit card had not been used for a considerable amount of time prior to this,
A more up-to-date version of the credit card has been issued.
The creditor identified suspicious activity on the account,
You filed a report about the card being lost or stolen,
The retail establishment that was associated with the credit card has permanently ceased operations.
The landscape of the economy has been altered.
The credit card issuer is in the process of going out of business and liquidating.

It is the responsibility of the credit bureaus to provide only correct information on your credit report. You have the right to contest an entry on your credit report if it incorrectly states that a credit card issuer terminated your account when, in reality, you were the one who asked for the account to be closed in the first place. Include a copy of your request to shut your credit card account together with the return receipt from the certified mailing to demonstrate that the creditor received your request. In any other case, if the comment is true, it will be reported on your credit report for the full term of the time limit that applies to credit reports. After seven years, the negative information associated with the closed account, such as the fact that it was charged off, will be removed from your credit report. Accounts that were closed while you had a positive balance on the account will remain on your credit report for the length of time specified by the credit bureau's internal criteria for reporting positive closed accounts, which is normally ten years after the account is no longer active.

Will the Remark Have an Impact on Your Credit Score?

You could be concerned about the impact on your credit score that will result from a comment indicating that the credit grantor closed the account. If you want your applications for a credit card and other loans to be accepted, having a decent credit score is really necessary. Your credit score won't suffer any damage if someone comments that your credit card issuer closed your account or if the fact that your creditor closed your credit card (instead of you closing it) is mentioned. Your credit score will not be affected by your comments in any way. Your credit score is determined only by the activity on the accounts you have. Because it is a quicker way to approve applications, potential creditors frequently check credit scores rather than going through the trouble of checking your credit report. It's possible that no one will notice the comment that the credit grantor has canceled your account. Despite this, it won't negatively affect your credit score in most cases, especially if the rest of your credit report has positive information. If you still have a balance on a credit card after closing it, or if you have balances on other credit cards, this could have an impact on your credit score. If you had only one credit card in your name when the account was closed, this could potentially have an effect on your credit score. Your credit score could be negatively impacted if the account was canceled due to past due payments, which would also have an effect on your credit score. If you believe that your account was closed in error, you can get in touch with the company that issued your credit card and inquire about reopening it. If this is not possible for you, the best method to protect your credit score is to swiftly pay off any outstanding balances.