Canceling any credit card before you apply for a loan is a bad idea. It affects your credit score negatively. A lower credit score will result in higher interest rates and higher fees on your upcoming loan. It doesn’t hurt you for the account to stay open but it can hurt you if you close it.
Do this instead: Pay the credit card off or transfer the balance to another card. If you’re never going to use it again, cut it up or store it somewhere. Don’t cancel it. You can cancel the credit card once you’ve determined that you’re not going to need a loan anytime soon.
