Why I Closed My First Credit Card and What I Would Do Differently If I Could Go Back

If you’ve been in the credit card world for a long time, you’ve probably heard the saying, “Never close your first credit card.” Since the length of your credit history is a big part of your credit score, closing one of your first credit cards can lower your score in remarkable numbers.

So why did I ignore this advice and close my first credit card? And looking back, what do I wish I had done differently? Let’s find out.

Opening my first credit card

Back in 2020, as the pandemic was raging, I developed an interest in personal finance while stuck at home. This new curiosity quickly turned into a passion, and I soon found myself deeply immersed in credit card world. The idea is that you can travel significantly cheaper by points and miles really attractive.

If I want to get into the points and miles game, the first step is to get first credit card. I thought this task was pretty easy; I kept watching videos and reading articles about how Discover it Secured was super easy to get approved. So when I submitted my application, I was sure I would be approved.

I was really surprised when my job application was rejected.

This failure really discouraged me and made me lose interest in credit cards for a while. I didn’t try again until a year later. I asked my parents if they would add me to the list. authorized user on their card, but they declined. Not wanting to be left out of the credit card game anymore, I rushed to apply for any credit card I could get approved for. That brought me to the Petal 2 card.

The information about the Discover it Secured and Petal 2 credit cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: 5 Mistakes to Avoid When You Get Your First Credit Card

Why I Closed My First Credit Card

When I got approved for the Petal 2, I was thrilled. It was a solid starter card: I was given a $500 credit limit with the opportunity to increase it after six months of responsible use. The card earned 1% refunds at first, but gradually increased to 1.25% then 1.5% as I continued to use my card responsibly.

I still persist in doing all the credit card commandmentsand my credit score has been increasing over time. Thanks to Petal 2, I was finally approved for cards like American Express® Gold Card and Chase Sapphire Preferred® Card.

Why close my first card?

In 2023, I received an email from Petal saying that my Petal 2 was being converted to a Petal 1 Rise. While my Petal 2 had no monthly or annual fees, the Petal 1 Rise had a monthly membership fee of $8. For a card with so few benefits, paying $96 a year was ridiculous to me.

There was no option to switch to another card without paying the monthly membership fee. I ended up keeping the card for another year, using my credit history to help me get approved for other cards. When I got solid set of other cards in my wallet to help my credit score in the future, I decided it was time drop petals. The process was easier than I expected; the representative I spoke with didn’t try to convince me to keep the card or seem surprised when I closed it.

The information about the Petal 1 Rise credit card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: How to Decide If a Credit Card Annual Fee Is Worth Paying

What would I do differently looking back?

With all my credit card knowledge and experience now, I would definitely handle my first credit card differently if I could go back. I wish I had spent more time learning about Petal instead of rushing into opening the first card I thought I could get.

I don’t think anyone anticipated the product changes they would impose on their customers, but with more research I would have learned why it’s better to stick with the big credit issuers than the startups. Big credit issuers like Chase And Capital One often follow better practices, such as allowing customers to swap switch to a no annual fee card if they want.

I will also apply for one or two other secured cards, like Capital One Quicksilver Secured Cash Rewards credit card or Capital One Platinum Secured Credit Cardbefore eliminating them as an option. And since I was a college student at the time, I sure wish I had learned about student IDs.

Related: Why Citi Rewards+ is Great for College Students

My Advice for Credit Card Newbies

Getting started with a credit card can be overwhelming, and getting rejected early on can be discouraging. If you’re denied a starter card and can’t get authorized user status on someone else’s credit card, you may feel like you’re running out of options. My first and perhaps most important piece of advice: Don’t get discouraged.

Remember that almost everyone in the points and miles game has been denied at least one credit card. If you get a denial or two, take a step back and evaluate your personal situation to see what’s going on. going in the wrong direction. You may be applying for cards you don’t qualify for, or you may not make enough money for the card issuer to feel comfortable lending to you.

Don’t rush into applying for your first card like I did. Stick with the big card issuers or your local credit union instead of believing the promises of startups.

And finally, remember that the world of credit cards is a marathon, not a sprint. It’s better to take your time, do your research, and know you’re making the right decision for your wallet.

Related: How to Choose the Best Credit Card for You

Last line

Sometimes it’s okay to stray from conventional credit card wisdom. In my case, closing my first credit card was necessary to get rid of unnecessary monthly membership fees. If you’re currently looking for your first credit card, learn from my mistakes and take your time. Your future self will thank you.

Related: My First Year Journey Into the World of Cards and Points