Definition - What does Credit Grantor mean?
Credit grantors are mortgage companies, credit card companies or other individuals who lend money or property to borrowers. Credit grantors will generally charge interest, which is the cost associated with the risk that the borrower will fail to make the required loan payments or that they will damage the property.
The interest rate charged by the credit grantor is calculated based in large part on the credit applicant’s credit score and other information found on the borrower’s credit report. Prior to lending, the credit grantor will review the applicant’s financial information and determine the interest, the loan amount and the terms of the loan.
Justipedia explains Credit Grantor
Although failure to repay your credit grantors is unlikely to result in criminal charges or a jail term, if you fail to repay your debts, your credit grantors may have the legal right to sue you in court, win a judgment against you and collect payment for debts owed.
Assuming that a judgment for repayment has been issued, there are several steps that the credit grantor can take to ensure repayment. Although not all options are allowed in all states, common options can include property repossession, bank account levies, property liens and wage garnishments.
Credit grantors, who have loaned money to purchase secured assets backed by collateral, such as a car or a house, may or may not have to go to court prior to repossession of the asset. State laws vary.
Debtors who cannot make payments to their credit grantors have several options. They can call their credit grantor and negotiate a repayment plan. If repayment is not possible, certain types of unsecured debts can be discharged through bankruptcy. Secured debts may also be sold to repay debt obligations; however, if the sale price is less than the amount owed, a deficiency may exist after the sale.