In the world of finance, credit cards are a bit like a double-edged sword. 

While they offer convenience and can help in building credit, they also have a significant impact on your borrowing power. 

This is a critical consideration for anyone looking to secure a loan, be it for a home, car, or personal use. 

Let’s unpack how credit cards influence your loan eligibility and what you can do to manage this impact effectively.

The Influence of Credit Cards on Loan Approval 

Credit Utilisation Ratio: One key factor lenders look at is your credit utilisation ratio. 

This is the amount of credit you're using compared to your total credit limit. 

A high ratio can indicate that you're over-reliant on credit, which can be a red flag for lenders. 

It suggests a higher risk of default, and as a result, can lower your borrowing power.

Impact on Credit Score: Your credit card habits play a significant role in determining your credit score. 

Consistently carrying high balances, makin...