The Meaning of "Account Closed at Grantor's Request"

Man reading paper with bad news
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Your credit report contains a wealth of information about your credit accounts. With certain accounts, your creditors may add a comment regarding the status of the account. Reading over your credit report, you might notice some closed accounts have a comment that states "account closed at grantor's request" or "closed by grantor." 

Why "Closed By Grantor" Might Appear on Your Credit Report

The credit grantor is another term used to describe your credit card issuer since they've granted credit to you.

 "Closed by grantor" might show up when your credit card issuer closed your credit card, which may have happened for a variety of reasons: you were late on payments, the credit card was inactive for a period of time, the credit card was replaced with a newer version, the creditor detected fraud on the account, or you reported the card lost or stolen.

If this isn't true and you requested that your account ​to be closed, you can dispute the credit report entry. Include a copy of your credit card close request and certified mailing or return receipt that proves the creditor got your request.

Otherwise, if the comment is accurate, it will stay on your credit report for the duration of the credit reporting time limit. If the account was closed with negative information, e.g. it was charged-off, then it will fall off your credit report after seven years. Accounts closed in good standing will remain on your credit report based on the credit bureau's internal guidelines for reporting positive closed accounts, which may be around 10 years after the account is no longer active.

Will the Comment Affect Your Credit Score?

You may be worried about how a comment indicating your credit grantor closed the account will affect your credit score. After all, your credit score is one of the most important numbers. Having a good credit score is critical to having your credit card and loan applications approved.

Fortunately, the comment that your credit card issuer closed the account or the fact that your creditor closed your credit card (rather than you closing it) won't hurt your credit score. Thankfully, these comments aren't factored into your credit score; only activity on the account will affect your credit score.

A creditor with whom you've applied for credit won't know that an account was closed by a creditor unless they manually review your credit report. Often, creditors check credit scores because it's a faster way to approve applications. Even if a creditor reviews your credit report, they likely won't hold it against you that your account was closed by the credit grantor, especially if the rest of your credit report contains positive information.

However, your credit score could be affected by a closed credit card if you still have the balance on the credit card or your other credit cards or if it was your only credit card. If the account was closed because of late payments, the late payments (not the "account closed" comment) will affect your credit score.