I owed a debt collector money but the case status is closed. How come I still can't get a credit card?

I was wrongfully charged by a doctor 3 years ago, when I was 19, so I decided to not pay for it. I was contacted by a debt collector once or twice but haven't heard from them since. I checked out my credit report online and it lists that I have money owed to collectors. The account name is SECURITY COLLECTION BU and the account status is Closed. The date that it was opened was 7/1/06 and under Terms it lists 1 month. From Sept 06 to April 07 I'm marked as KD (key deragatory) under 24-Month payment History. Do I still have to pay the collectors? If not, how long before my credit gets better? Also, if i must pay the collector's or dispute the money owed, where would I find the collector's contact info?I owed a debt collector money but the case status is closed. How come I still can't get a credit card?
Alchemist is wrong....when you dispute a report it does not get removed while it is being investigated. It will only show ';in dispute';.





Your problem isn't gonna be easy. Your lack of knowledge with collection laws has caused this debt to get on your report.





Your best change of getting it removed is through the dispute procedure. Demand that they validate the debt. Also, you claim that the date these medical bills occured was 3 years ago....but the date they opened it was 7/1/2006? It sounds like they are reporting the incorrect date, and that can also cause the report to be deleted. Be sure to dispute that! It nothing else, changing this date will cause the item to come off your report sooner.





Reporting dates for medical bills is 7 years, starting on the date the service was provided.I owed a debt collector money but the case status is closed. How come I still can't get a credit card?
Send the three major credit bureaus a dispute letter and tell them you want the KD removed because it was false. They will remove it while they investigate the case. It takes a while to investigate and you'll have a couple of months to get your applications in for a card. If they find in your favor, the charges will be removed permanently. The credit bureaus will have a contact number on the reports.
The account is closed, that means that it isn't ';open';. An open account is one where you are still paying or they are still offering you credit. This account has not only be closed, but I assume it is also charged-off.





First, get a copy of your credit report from the big 3. You can do this for free at www.annualcreditreport.com That is the only website that gives you an absolutely free report from each of the 3 credit bureaus each year.





Once you have your report, dispute the collection account. You'll have to do this with all 3 agencies.





They will investigate and if the creditor cannot verify the debt (or validate it) then they will remove it from your report.





If the debt is valid, then you have other options.


1. Pay it. If you decide to pay it, send your creditor what is called a ';Pay for Delete'; letter. State that you will pay the charges in exchange for them ceasing to report, validate, or verify your account with the credit bureaus. You can google ';Pay For Delete Letter'; and get an idea of what to write. If they agree and send you an agreement in writing, then pay it. They may not agree. In that case, go to option #2.


2. Wait it out. It will take 7 years to fall off of your credit. Find the ';DLA'; or Date of Last Activity for that item on your credit report. Seven years from that date is when it will fall off your credit.





In the mean time, you may want to find a secured credit card. It will go a long ways towards rebuilding your credit. Orchard Bank is a good place to start. They have a high approval rate and if pretty low fees (compare to Centinniel and 1st Premier who both charge around $250 just to get the card!). You can try for their unsecured and if denied, they will offer you the secured version.





Good luck.





Good luck.