What Is A Credit Grantor- Explained with Examples

A credit grantor is a person or institution that grants you credit. A credit grantor can be a credit card issuer, a financial institution, or a company that grants you some sort of credit.

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However, don’t worry. Because as a financial advisor, I have helped a lot of my clients understand complex credit card terms and I am going to assist you too. 

Today I am going to explain  What is a credit grantor with examples along with who is a credit grantor, credit grantor example, credit grantor reference, credit grantor’s request, and many more related terms. So, stay with me till the end. 

What Is A Credit Grantor?

A credit grantor is the person or institution who grants you any form of credit. A credit grantor can be either a credit card issuer or a company. Moreover, the credit issuer or company can grant any sort of credit like installment credit or service credit. So, is it a particular person?

Who is The Credit Grantor?

The credit grantor is not a particular person. Instead, it’s an organization in most cases. But a person can also be your credit grantor. For instance, if you take a personal loan from a non-professional lender then that particular person can be your credit grantor.

Now we know whats a credit grantor. So, let’s look at an example to understand credit grantor meaning better.

Credit Grantor Example

For instance, you got a credit card from a financial institution called ‘‘X Bank’’. Here the  ‘‘X Bank’’ is your credit card issuer. So, ‘‘X Bank’’ is your credit grantor. 

On the other hand, you get electricity from a power distribution company called ‘‘Y Power’’. Here, ‘‘Y Power’’ provides you with electricity for this month and sends you the bill for the month. You pay the bill next month. In the sense ‘‘Y Power’’ is providing your service credit.  

So, ‘‘Y Power’’ is also considered your credit grantor. 

As a result, it can be said that credit grantor is another term for credit issuer. But what is a credit grantor on a rental application? 

What Is A Credit Grantor On A Rental Application? 

The credit grantor on a rental application can be an organization, person, business, utility company, or Bank you have had a previous financial relationship with. 

When you rent a property you have to fill up the rental application. In the application, there is a section called credit grantor. Here credit grantor means a person or organization you have had a financial relationship with. 

In here you can put the name of an organization, person, business, utility company, bank, or your previous landlord. 

Landlords add this to the application because they want to find out about your payment behavior. It can also be found in other places. So, what does the Credit Grantor reference mean? 

Credit Grantor Reference Meaning 

A credit grantor reference means a reference from a bank you have taken a loan or credit card from or a company you have previously paid bills regularly. 

Actually, credit grantor reference is the same as credit grantor on a rental property.  They serve the same purpose which is to determine your payment behavior. 

Other than providing references, a credit grantor has a lot of influence over your credit card or service credit. These influences or decisions are mentioned in your credit agreement. These decisions might include changing credit limits, increasing interest rates, including extra fees, late payments or even closing your credit account. 

Yes, you herded it right. So, carefully read your credit agreement before signing it.

By this time we have found out credit grantor definition, who is a credit grantor, credit grantor example, and credit grantor reference. Now let’s find out what does an account closed by credit grantor mean? 

Account Closed By Credit Grantor Meaning

A credit grantor can close your credit account with or without your permission or warning. This is also known as an account closed by credit grantors request. 

A credit grantor can close your account for many reasons. Such as 

  • Inactive or no usage for a long time.
  • The card is reported to be missing or lost. 
  • The creditor is closing or liquidating.
  • You replaced the card with a new one.
  • Fraud or malicious activity detected. 

These are some of the reasons why your account can be closed on credit grantors request. However, it can be anything depending on your credit grantors policy and will. But does it appear on your credit report? 

What Does Account Closed On Credit Report Mean?

Account closed on a credit report means one of your credit grantors closed your account.

As account grantors can close an account without a warning. So, it can appear on your report without you even knowing and it can remain on your account for as long as 10 years. 

However, how much it will affect your credit report will depend on the credit bureaus policy. If you want to know whether debit cards affect credit scores then check out our article on does debit cards affect credit?  

In case you and your creditor did not close the account and it appeared on your report without any reason then you can File a dispute.  

Now let’s learn if a credit card company closes your account can it be reopened. 

Can You Reopen If A Credit Card Company Closes Your Account? 

Yes, you can reopen an account if a credit card company closes your account. 

However, to reopen, first, you need to know the reason why your credit grantor closed the account. Once you have found the reason then you can contact your credit card issuer, provide an explanation if you had any fault, and request to reopen. 

But if your account was closed due to an agreement violation then there is less possibility of reopening your credit card. 

Lastly, if you are worried about your low credit score then check out our article on the effects of poor credit score on employment

By now we have found the answer to what is a credit grantor. Now let’s look at some of the related queries.


Here are some of the frequently asked questions related to this topic. 

What is the role of a Credit Grantor?

The role of a credit grantor is to provide credit or loans to creditworthy borrowers. Banks, credit unions, finance companies, and other types of lenders are considered to be credit grantors. They offer a variety of credit products, such as credit cards, personal loans, mortgages, and business loans.

What Happens when a Creditor Closes Your Account?

When a creditor closes your account, it means that you can no longer use that account to make purchases or borrow money. However, you are still responsible for paying any balance that you owe on the account. If your creditor closes your account, you should be notified in advance via mail or message. You will also receive a statement showing your final balance and payment due date.

Do closed accounts hurt your credit?

Yes, closed accounts can hurt your credit, but the impact depends on a number of factors such as The reason behind closure, unpaid fees, balances, and many more. It is important to note that a closed account will remain on your credit report for at least 10 years. This can have a negative impact on your credit score, especially if the account was closed due to delinquency or fraud.

In Summary

Credit grantor is a phrase used to refer to your credit card lender. So, don’t get confused when you see it in any financial or legal document.  

Finally, it’s suggested to read and understand the credit agreement before signing it. You can take the help of a financial advisor or an expert to protect your interest. 

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