I have made several rag quilts and have found that flannel makes the nicest quilts. I use 2 layers of flannel with a layer of batting in the middle. The batting is cut 1" smaller than the quilt squares so it doesn't catch in the seam. The closer you make you make your snips the nicer the ragging looks. I have also make a lot of rag purses/bags. I used cotton fabric for these and they turned out nice. After you get through snipping take it outside and shake it really good then run it through a cycle in the dryer. This helps get loose threads off the quilt. Then wash and dry it. There will still be loose threads but this process helps a lot in getting them off.