You need to show that you have good credit rating before applying for a loan. If you pay your credit card bills on time, then your credit rating is surely going to improve but if you don't make use of credit cards for payment there are other ways of improving your credit rating.
Firstly, list items that you currently have to make payments and it may include car insurance, land line, cable television, cell phone, rent or anything that involves payment.
Secondly, make sure that items that require payment should be paid on time and when paying use check, make sure there is a receipt and keep it.
When the year is ended, you can call on the companies that you are making regular payments to and request a payment history. If you these this consistently for a period of two years it will help you when applying for an FHA or USDA loan, since this is what they look at before you can qualify for a home loan.
Think about this you need a loan for something that you consider important but you cannot figure out why you are being denied access to this loan when it is waiting for you to pick it up, well I just have to tell you this you might be hurting yourself more and limiting your chances to getting a loan if you are still using your credit card to accumulate more dept and you are finding it difficult to stop.
I would show you how to break this habit and reduce the debt on your neck, just one call to your credit card provider is all that is require to make your card inactive but because you are an impulse buyer, you can't resist the temptation when something juicy comes your way, well it is right when you buy things that will be helpful to you but remember it does not have to be to your detriment, how would you feel if you are told your card has been denied, therefore closing your credit card is not a very good decision as it will impact negatively on your credit score, therefore leave it open
Do not carry you credit card in your wallet when you don't have any need for them, leave it at home, therefore if you run across something that interest you, then you will have to pay with cash or wait till you are home to get it.
Another thing you can do with your credit card is to keep it out of sight, keep it in a place that is difficult for you to get, that way you would be reducing the temptation of being caught in any debt accumulations, once you can do these will your credit card then you have gradually started improving your credit score without inactivating your card and your chance of getting a loan will improve.
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