Will "Closed By Grantor" Affect Your Credit Score?

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Will "Closed By Grantor" Affect Your Credit Score?

• NEWHORIZON.ORG

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What Is A Credit Grantor?

• The credit grantor is another term used to define
  your creditor or company that gave credit to you.
  As your credit grantor, the credit card provider
  can make a lot of choices concerning your account
  as described in your credit card agreement. They
  can increase or reduce your credit limit as well
  as change the interest rate.

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• They also have a power to charge your account for
  a particular purchases, and can can charge fees
  as a fine if you're late with your monthly
  payments. And lastly, your debt grantor can also
  close your bank account, in some cases without
  warning.

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Why "Closed By Grantor" May Appear on Your Credit
Report?

• There are many reasons why your credit card might
  be closed...
• 1. You missed several of your payments
• 2. Your credit card was inactive for an amount of
  time
• 3. The credit card was replaced with an updated
  credit program
• 4. The creditor found fraud on the account
• 5. Someone stole your credit card and you
  reported it

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• Credit reporting agencies are required to report
  ONLY accurate information on your credit report.
  If the information is inaccurate, you can dispute
  it. But if the report is correct, it will stay on
  your credit report for a period of time.

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Will the Remark on Your Credit Report Affect Your
Credit Score?

• Fortunately, any comment stating that your credit
  card issuer closed your account or the fact that
  your account closed by credit grantor (rather
  than you closing it) won't hurt your credit
  score. Comments aren't factored into your credit
  score only activity on the account will affect
  your credit score.

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• However, your credit score could be affected by
  an account closed by credit grantor if you still
  have the balance on the credit card or if your
  other credit cards have balances. An account
  closure could also affect your score if the card
  was your only credit card. If the account was
  closed because of late payments, the late
  payments would also affect your credit score.