Will consolidation raise my FICO?? Help Please!

[Anonymous]

I have a $26,000 student loan with Sallie Mae that has 90 day lates 07/2009=I4,06/2009=I4,07/2008=I5.  My Equifax Fico is 684 and I want to get it up to obtain a residential construction loan and mortgage.  I am able to get a Federal Direct Consolidation loan and was told that it would rehab and remove the negative reporting. Does this sound right?

Also, it is currently showing a utilization of 104% because the original loan amount was $25,000! ??

Will this bring up my score even though it will be a new account since the other will be paid off with no negative info and utilization will be at 100% vs 104%?

I don't want to do anything that may bring my score down.

Thanks for any useful info!!

[Anonymous]

regarding rehab.. read this http://ficoforums.myfico.com/t5/Student-Loans/Federal-Student-Loan-Rehab-The-Law-and-You-please-read...

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spicycurls wrote: 

Also, it is currently showing a utilization of 104% because the original loan amount was $25,000! ??

Will this bring up my score even though it will be a new account since the other will be paid off with no negative info and utilization will be at 100% vs 104%? 

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 student loans do not count toward util.  i owe more on my student loans than i did at graduation due to several periods of forbearance and deferment, but this does not affect util.  something else must be going on.  do you have credit cards or other revolving accounts that are over the limit?  either there are other accounts that are over the limit or there is something wrong with the way your SLs are being reported.

[CMJustice26]

I consolidated mine in November and took a minor hit to my FICO score at the time (5-7 points I think, not attributable to anything else).  My score has increased quite a bit as of the end of this month, but I also paid off all other debt.  It will probably raise your score eventually, but it will take several months like any new account.