We have a couple of credit cards we use to pay household bills and then we pay the bill in FULL when it is due. I had one card we were carrying a balance on at 0%.
The lender demanded that we have NO balance showing on any credit card accounts before they would continue to process the loan application. Whaaaa.....??? The cards I have give between 1% and 5% cash back, but I can't continue to get that benefit so I can show that I don't need a loan to be able to get a loan.
So being wise with my credit cards is working against me. Think about it, if I get a 5% cash back on purchases and I make $500.00 worth of purchases every month, that means in a year I get $300.00 cash back every year. That is enough to make the payment on the loan for one month.
As the saying goes: Go Figure!
So, I have paid off the credit cards now so it looks like we don't need a loan. I hope the credit card companies don't get mad at me for not needing their credit too.