Utilization ?

[cassie3783]

I know this has probably been asked before, but when I did a search, I couldn't find anything related to my specific question.

I have a total of 5 credit cards, all with varying credit limits & balances.

Old Navy - $250 limit, $0 bal.

Capital 1 - $351 limit, $132.76 bal.

Chevron - $500 limit, $0 bal.

Wal-Mart - $400 limit, $0 bal.

Discover - $1200 limit, $460 bal.

I also have a car that I just refinanced for approx $14k.

Question: do I include the car when calculating utilization ratio's?  or is that applicable to credit cards & other "personal" loans only?

Sidenote: I do plan to pay off the Cap1 with my "extra" paycheck I'll get this week then be done with it.  It's my secured credit card, which also happens to be my oldest, but it's also useless now that I finally have other, more beneficial cards.

Thanks in advance for your help/advice/suggestions!

[urbex]

No, utilization is only calculated on the revolving credit - credit cards, lines of credit, etc.  Basically the stuff you can use to go on a shopping spree with.  The installment loans, such as a car loan or mortgage isn't something you can increase the balance on in that manner. 

[cassie3783]

Awesome! I *thought* that was most likely the case because, like you said, the balance can't be increased, I just wanted to make sure.

Thanks!!

[Journeygod]

Hi, It's my understanding that 'utilization' only applies to credit cards. As in "how much revolving credit are you utilizing" at any given time.

And here's a tip: If you REALLY want to maximize your score growth potential, only carry a balance on one card at a time and try to keep your utilization between 3-5%

-John