I do a lot of machine appliqué and to avoid holes I use a Microtex needle. These have very sharp blade-like points to pierce the fabric. The actual eye in the needles is the same no matter what size of needle you buy, so if your fabric is not too thick you can go right down in needle size.
Also, if you haven't got Metallic needles to hand, Topstitch is another needle with a big eye.