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CreditNoob17

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Settled with collections but debt balance still shows in report
Hello. I would like to ask for some advice or gain some knowledge about my situation please. I don't have a lot of knowledge about credit and how it works so I would appreciate any insight to my situation or about credit in general. Thank you in advance!

I opened up a credit card with Best buy in 2008 and ran into some financial trouble and wasn't able to make my payments. In 2011, they closed my account and sold it to a collections agency. They contacted me and I settled with them for the next 2 years and paid off my balance with the agency on January 2013. I swore off credit cards/loans from then on.

After getting married and just working on getting our finances into a healthy place, I decided to check my credit score today and realized it's not super great. It's not necessarily an ACTIVE goal of mine to get the credit score up, but I just wanted to be aware with my situation. All my old accounts is closed but the credit card from Best Buy still has the balance of $860, which was the balance (I believe) that I owed before they closed it and sold it to collections.

My question is, since I paid off the debt with collections, is it correct that my old balance still shows? Was that balance supposed to be paid down by collections, or does it stay there regardless if I settled with collections already? What would you suggest my next steps be?

My Credit Karma Details for that account:

Balance: $860
In Use: 29%
Credit Limit: $3,000

Payment Status: In Collection/Charge-off

Last payment: Jan 4, 2013
Amount past due: $59
Minimum monthly payment: $0

Account Status: Closed
Type: Charge Account
Responsibility: Individual
Remarks: Charged off as bad debt, canceled by credit grantor
Times 30/60/90 days late: 0/0/0

Thanks again for taking the time to look.

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Top Contributor
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If the account was closed in 2011 then the "last payment date" should not be showing Jan 4, 2013.  If you can find any proof that the account was closed in 11, that would be beneficial. You are correct that the account should not be showing a balance, it should be marked as zero. I would consider disputing the account for the reason that it was closed in 11 and that the account is showing a balance. And hope it gets removed rather than corrected. Be aware though, if the account has not updated for a while, disputing it will cause an update which will  cause damage. I advise some further reading on this subject so you can make an informed decision of your own and also continue to read all that you can about rebuilding credit as it is never to early to start as it takes time. Consider a Secured card from Capital One, use it responsibly and read, read and read. You will get straightened out.

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