Home / Weekly Tips / Closed by Consumer vs. Closed by Creditor

Weekly Tips

Closed by Consumer vs. Closed by Creditor

A closed credit card account will show up on your credit report as either "Closed by Consumer" or "Closed by Creditor". The words may not be exactly the same, but a close variation should easily be found on your credit reports. So, which one of these notations packs more of a punch when it comes to hurting your credit scores?

While closed credit card accounts generally have a negative effect on your overall credit score, it actually doesn't make a difference whether your creditor shut down the line or you requested the closure yourself.

According to Ron Griffin, a former director at Experian, "which party closed the account has no bearing on a credit score." However, don't forget that lenders may express concern when they take a closer look at your credit reports and find several accounts closed by creditors. They prefer to see accounts closed by you, not your credit card company.

on Thu, 2016-06-30 15:20