Canceled By Credit Grantor: What Does It Mean?

A remark of this nature generally means the creditor of a particular account made the decision to cancel the line of credit initially provided to the lender. When the creditor cancels this credit line, a “Canceled by Credit Grantor,” remark will appear on the credit report. 

Is It A Bad Thing To Have “Canceled By Credit Grantor” On A Credit Report?

When a creditor closes a consumer’s account, they do it because a change in consumer behavior has occurred. The creditor will close the account to mitigate any further losses under the following circumstances:

1. There is a consistent pattern of late payments,
2. The consumer has ‘maxed’ their credit card (transactions have gone above limit), or
3. The activity and behavior on the account is signalling that the borrower is overextended. 

The “closed by credit grantor” action creates a negative impact on the credit score. The negative impact will be greater if there is a “closed by credit grantor” remark and an unpaid balance on the account.

It’s a negative remark that will lower your score and be a negative signal to future lenders as well. So, yes, having this remark on your credit report would be considered a bad thing.

How To Remove “Canceled By Credit Grantor” From Your Credit Report?

Usually, there are three ways you can attempt to remove this type of remark from your credit report:

1. Ask the creditor to remove it. Bring up any unique circumstances which may have caused your difficulty with the credit line. It doesn’t work often, but it’s free and easy to try.
2. The creditor agrees to reopen the account. A creditor may agree to reopen the account if the consumer's debt-to-income ratio has improved and their repayment history has improved.
3. The account is entirely removed from the credit history. This involves negotiating any unpaid balances in exchange for the remark to be removed across the credit bureaus. Typically, you will need legal counsel or a credit repair agency to help you with this option.

These three options are all at your disposal to try and get this negative remark removed from your credit report.

Bottom Line

A “canceled by credit grantor” remark on your credit report can negatively impact your score and future borrowing potential. To avoid this remark, make responsible and timely payments on your debts. If you do incur this type of remark, follow the correct steps to get it removed whenever possible.