Need. If you want to apply for a decoration loan, the bank will usually ask the applicant to pay off all the credit card debts. This is because the bank will decide whether to approve the loan application according to the credit record. If your credit card is overdue, or you often overdraw your credit card, it will affect your credit score, thus reducing your chances of getting a loan. Therefore, before applying for a decoration loan, it is best to pay off all the credit card debts to improve your chances of successfully obtaining a loan.