It looks like your score dropped from the removal due to age of account. The CRA will remove the acct while in dispute and if its validated they will place it back, just fyi. If it stays off, that is a good thing, your score will recover those points rather quickly coz the acct isn't being updated neg every month. Yes continue the course, your scores will improve, just got to give it a little time for all the work to reflect and your new accounts to age a bit. Your on your way, keep plugging along and you will be surprised where your scores are in 6mo from now, if not before. Keep it up, the scores will come, along with better credit options in the near future. Good Luck!!!
You want to pay them off so they quit reporting a balance and PIF. It will help if you can set up a PFD in return for full payment. Paid is always better than owed. Owning holds your scores down.
I am not convinced that removal of verizon account during a dispute would cause such a large drop
You usually see that with old revolving or installment TLs, but not collections. Verizon was never a TL (as only negative is reported) hence not contributing to AAoA in any way (other than CK, which includes collections, rocks and stamps)
@Ldennis You keep mentioning TU and EQ, are you seeing these drops on Credit Karma?
Yes, I'm seeing the drop on CK. I also monitor my Experian but it hasn't had the Verizon drop off yet. On CK it listed that account as the only change. I haven't applied for anything new. No new collections, and still 100% payment history. I see no reason why it would drop like that.
Vantage scores are really not used for lending. So, that score drop is completely irrelevant. Credit Karma is good for monitoring your reports, but not much else.
Basically, they add age of negative towards AAoA. So, when negative is removed, score drops because AAoA is lowered, when it should not have been counted in a first place. It's a crazy concept.
Fico models (which are used in lending) do not behave like that.
If you're curious about vantage scoring and fico scoring, there are plenty of threads in General Credit and Scoring forum
If you want to know at least one of your Fico scores (EX Fico 8) sign up for Discover scorecard. It's free, you dont have to have discover card and it will give you EX score every 30 days.
You have nothing to worry about.