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What does "account closed by creditor" mean on credit report?


Some closed accounts on your credit report may have a comment that reads "account closed by creditor" which means the creditor cancelled your credit card (as opposed to you closing the account). The phrase "account closed by grantor" is also used. Creditors have different reasons for closing your credit card, e.g. you became delinquent on the account or stopped using your credit card.

The remark "account closed by creditor" doesn’t hurt your credit score, but future lenders who read the report may look at it unfavorably. Having a credit card closed, whether by you or the creditor, can hurt your credit score if you have a balance on the credit card, or if you have high balances on all your other credit cards.


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