Score drop after consoliation of student loans.... score=mortgage

[Anonymous]

Ok starting the process again looking to buy by the new cutoff for the tax credit.  Anyway my midscore was 640 when all of this started, now with consolidation of my student loans my score has dropped 20 pts.  How soon for a rebound?  Two baddies listed on medical collection I'm trying to get HIPAA'd.  I think my scores are lower because the only credit cards I have are all low credit limits $500-800 so any allowable usage is minimal trying to leave them at close to zero balances.  I've tried applying for cards that may give higher credit limits but with all the pulls during the summer for my mortgage attempts I get hit with too many inquires.  Should my score have a rebound from this consolidation soon?  I'm saving all I can until then so I have double the requested amount for FHA even though that was not an issue only reason I was denied is property was not acceptable.

[Anonymous]

it will take awhile to recover from the loss of account history.  You got hit for new account, inquiry, and average age of accounts dropping when you consolidated. 

Do not apply for anything, even CL increases.  You do not want any more inquiries and any new credit is only going to help you FICO wise if you are running high utilization.  Do not use the cards you have except for like 1 small purchase each month and then PIF.  It is going to take some time for all the inquiries and the new account to age out for the score to recover.  If you can get the medical ones Hippa'd off then that should show an increase.