Canceled by Credit Grantor: What Does the Message Mean?

Canceled by Credit Grantor

When you check your credit report, you may find that an account was ‘canceled by credit grantor’. this means that the ‘credit grantor’ aka your bank or other lender has closed your account. This could be for several reasons, some neutral and some bad.

This is perfectly legal and your credit grantor has the right to make many changes to your account such as changing your credit limit (the amount of available credit) and the credit account closed without the customer’s knowledge is not uncommon.

Why was my account ‘canceled by credit grantor’?

There are a few reasons that your credit grantor may close your account. In practical terms, this means you no longer have a credit line with them, but this can happen for several reasons and can sometimes be undone.


If an account does not have activity for a long time, it may be closed, even if no payments are missed. This is most common with credit card accounts, where the credit card issuer has registered no use on the card for a certain length of time – normally over a year. A credit card company may then close the credit card account, despite it not being a negative account.

While this is not a bad thing, some lenders may take this as a bad sign, and so it is better to either keep it active, which can help improve your FICO score, or to close it yourself when you no longer need it.

Missed payments

Missed or late payments can also be a reason for the credit grantor to cancel the account. If the account in question defaulted, then the creditor may close it. Credit card companies usually close an account after a certain length of time with no payment to stop the customer from racking up more credit card debt that the creditor feels they are unlikely to pay off. It is possible to re-open this account if you pay off the outstanding debt and speak to the credit card issuer. Of course, this is completely up to the discretion of the company in question. If the creditor closes the account, they are not obliged to re-open it.

If there is just one missed payment, or you have significant extenuating circumstances, it may be possible to have the account reopened if you write a goodwill letter to the company explaining the circumstances and stating your intent to repay the outstanding balance as soon as possible.

Charged off debt

If a company believes that a debt will never be repaid, they can ‘charge off’ the debt as bad debt. Charged-off accounts are still accounts that owe money, but the original creditor may choose to sell it on to a third party such as a collection agency to attempt to retrieve the unpaid balance.

The account holder will still owe this money until either paid, dissolved through bankruptcy, or expires due to the statute of limitations – this is normally under seven years but can be as long as fifteen in some states.

Having a charged-off account on your credit report has a significant negative impact on your credit score and having a debt collector pursue you for charge-offs will show future creditors that you are significantly less likely to pay back the loan or credit line you have applied for making it harder to get a new account in future.

What does canceled by credit grantor mean?

‘Canceled by credit grantor’ means that the account has been closed by the lender extending the line of credit or offering the loan. This is common with credit card accounts where the credit card issuer closed the account due to inactivity, or to stop you from spending more money that they believe you will not pay off.

If the credit card company closed the account this won’t affect your FICO score any more than if it had remained open, although some lenders may see it as a red flag. Any late payments or incurred debt will still affect your credit.

Is being canceled by a credit grantor a bad thing?

Having an account be canceled by credit grantor does not directly affect your credit rating. While the account shows statements indicating that the account was closed at the grantor’s request, this remark means nothing in terms of your FICO score.

If it was closed due to a charge-off or because of late payments, this negative information will show up independently of this comment and will have a negative effect on your credit score.

However, an account closure at the grantor’s request is not always welcomed by future creditors.

Can I remove this from my credit report?

Whether or not it is feasible to have a closed account status marked as canceled by credit grantor removed from your credit report depends largely on why the account was closed. If it was closed due to inactivity, or if you believe that the statement was a mistake and represents inaccurate information, having this removed will be a lot easier than if a creditor or collection agency is still waiting for a debt to be repaid. The old debt will need to be cleared before this can be removed and most of the time, even if the debt has been repaid, you will need to get a credit repair service involved to negotiate on your behalf.

Of course, the other option is for the line of credit to be re-opened, although this tends to require a drastic change in your financial position

How can I pay down my debt to reopen the line of credit?

If you find yourself struggling to cope with rising debt, you need to take control of your financial situation.

First of all, look at your financial reports and see where exactly you spend your money. Once you do this, you should be able to cut down on non-necessities and reduce expenditure. While it’s worth shopping around to get the cheapest deal for utility bills, this may not be easy if you have a bad credit rating.

Secondly, see if you can get any extra income, such as with a side hustle. You could take up freelance work during your free time, or upcycle old furniture that people are giving away and sell it for profit.

All of these savings can be used to pay down your debt. You should start with the debt with the highest rate of interest while maintaining minimum payments – enough to cover the interest – on the other loans. This will allow you to get rid of the loan that is costing you the most quickly, then you can move on to the debt with the second-highest rate of interest, and so on.

Are old credit accounts important?

Old credit accounts, if they remain open, can help to improve your credit score as they show a mature credit history and that you can manage multiple accounts. This is why it is not necessarily desired to have a credit account closed due to inactivity.

However, if you have outstanding debts on them, then they can have the opposite effect.

How can I stop an account from being closed?

Assuming you have not missed a payment on an account, the easiest way to prevent an account from being closed by credit grantor is to keep the account active. This does not have to be a large amount; you could set up the account to make one small payment each month and set up a direct debit for that amount to pay off the debt before it becomes due. This will keep the account active and therefore open.

If you have missed a payment, you should pay this and any associated interest and fees as soon as possible, and contact the credit grantor in question.

If this is not possible, you should talk to the credit grantor immediately and seek to work together to come up with a payment plan for what you owe. In this case, you may be asked to provide evidence of extenuating circumstances that you can repair in the future.

How else can I improve my credit score?

There are a number of ways to improve credit scores. Credit reports are a record of your financial history in regards to your lines of credit and the loans you have taken out. A good credit score is gained by paying off bills and loans on time and proving that you are a stable and safe option for lenders.

If you are looking to take out a loan or a new line of credit, it is worth looking at your credit before you begin. You can get a free credit report from credit reporting agencies, also known as credit bureaus.

The first thing you can do is check that your report contains accurate information. If certain aspects of your credit history are missing, then you may find that adding these increases your score.

There are also other ways to build credit scores.

If you have very little credit history, consider getting a credit boost. This involves letting one of the main credit bureaus have access to your own account. This lets them see how you spend money and allows them to use things like utility bill payments and streaming subscriptions to boost your score.

If your credit is largely negative, you can build it using a credit builder card. These have low credit limits and high-interest rates so, as with all credit card payments, it is important to pay the balance on time to avoid paying interest on your purchases. These cards may even initially make your credit rate go down, but if you keep using them and paying them off things will begin to improve and your credit repair can begin.

As companies are looking for stability, you can also boost your score by registering an address and by not frequently moving, as this implies that you have not had any issues with rent. You do not have to live alone for this to help and the easiest way to do this is to register on the electoral roll.

What is a credit report?

A consumer’s credit report simply means a report on what money they have borrowed, paid back, have outstanding, and other details of their financial history. Credit reports are collated by credit bureaus who are voluntarily sent the information by the financial institutions who have loaned you money or given you a line of credit, for example, the company that issued your credit card account.

Credit reports are instrumental in credit grantors setting limits, or a lender extending the length of a loan.

What is included on a credit report?

  • Personal Information
    This includes your address, full name, date of birth, and social security number. This information does not affect your credit, or FICO, score but is included as a way to identify you.
  • Details of lines of credit and loans
    This will include any money that is overdue, the size of the line of credit or loan, and the payment history on the loan or line of credit. This includes closed accounts; having closed accounts on your credit report does not affect your credit score but payment history or outstanding balance can do so.
  • Bankruptcies
    If you have declared bankruptcy at any point or had it declared for you, this will appear on your credit report and have a strong negative effect on your credit score and it will most likely take some time for your credit score to recover.
  • Collections accounts
    Collections accounts are accounts where the balance has been turned over to a collections agency, such as when accounts have been closed and charged off. This will also cover money owed to healthcare professionals, insurance companies or any other money that is being actively collected.
  • Inquiries
    Some inquiries will appear on your record. These will not include inquiries that you make nor routine requests by your bank or other lender but will include inquiries that precede an offer of a loan or line of credit.


Simply put, something being canceled by the credit grantor means that the company who you owe, or owed, money to has closed the account. This is not necessarily a bad thing, but on your credit report, the remark means that other potential lenders may be put off, or offer smaller credit limits.

You can petition the relevant credit bureau to have this removed from your report, but this is unlikely unless this happened due to inactivity. You may have to get professional help to negotiate for you. However, a credit report only shows information from a certain length of time, and after a while, this remark will be removed from your report without any effort on your part.

If at all possible, you should keep old accounts active by shifting small amounts of money through them to avoid them being closed by the credit grantor.

If this has happened to you due to problems with debt, then you are best off making a plan to pay down your debt. There are many ways to do this, but the general rule is to start with the debt that has the highest interest rate. Once you have your finances under control you can start to look at improving your report.

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