A credit grantor is the company or individual that is lending money or property to a borrower. The credit grantor assumes the risk that is involved in the transaction, including that the borrower may default on the loan or damage the property.
Most credit grantors use information found in an applicant's credit report to determine whether or not an application is approved. Credit grantors that are lending funds may also examine an applicant's income and financial information to ensure that the ability to repay the loan exists. The credit grantor also has the right to close an account or charge interest on the funds that are loaned.