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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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Why I closed my first credit card, and what I'd do differently if I could go back
Olivia Mittak is a credit cards editor at TPG. She specializes in maximizing earn for points and miles, finding the best welcome bonuses and choosing the right credit cards for your wallet.
July 22, 2024 • 7 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
The article recounts a personal experience with opening, using and eventually closing a first credit card, challenging the common advice to never close your oldest account.
A product change introduced a monthly membership fee, prompting the decision to close the card after securing other accounts to support credit history.
The author reflects on the importance of researching card issuers and options, especially for beginners, and highlights the value of patience in building credit.
Key advice includes not rushing into applications, considering established issuers or local credit unions and viewing credit-building as a long-term process.
What to consider
Product changes can introduce new fees or terms, making a previously suitable card less appealing.
Closing your oldest card may impact your credit score, so it's wise to ensure you have other accounts to maintain your credit history.
Major issuers typically offer more flexible options for product changes compared to newer startups.
What you'll miss from the article
Personal insights on navigating early credit decisions, including how to evaluate card options and handle setbacks as a beginner.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
If you've been in the credit card world for any length of time, you've probably heard the saying: "Don't ever close your first credit card." Since the length of your credit history is an important part of your credit score, closing one of your earliest credit cards can ding your score by a noticeable amount.
So why did I ignore this advice and close my first credit card? And, looking back, what do I wish I'd done differently? Let's get into it.
Opening my first credit card
Back in 2020, when the pandemic was in full swing, I developed an interest in personal finance while stuck at home. This new curiosity quickly turned into a passion, and I soon found myself diving deep into the world of credit cards. The idea of being able to travel for significantly cheaper by way of points and miles was intriguing.
If I wanted to get into the points and miles game, the first step was getting my first credit card. I assumed this task would be pretty easy; I kept watching videos and reading articles about how the Discover it Secured was extremely easy to get approved for. So, when I sent in my application, I was certain I'd get approved.
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Color me surprised when my application was denied.
This setback really discouraged me and caused me to lose interest in credit cards for a while. I didn't end up trying again until a year later. I asked my parents if they'd be open to adding me as an authorized user on their card, but they declined. Not wanting to be left out of the credit card game any longer, I rushed to get whatever credit card I could get approved for. That landed me with the Petal 2 card.
The information for 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.
When I received my approval for the Petal 2, I was ecstatic. It was a solid starter card: I was given a $500 credit line with the chance for a credit line increase after six months of responsible use. The card earned 1% cash back to start, but this gradually increased to 1.25% and then 1.5% as I continued using my card responsibly.
I remained diligent about following all of the credit card commandments, and my credit score slowly grew over time. Because of the Petal 2, I eventually got approved for cards like the American Express® Gold Card and the Chase Sapphire Preferred® Card (see rates and fees).
In 2023, I received an email from Petal informing me that my Petal 2 was being product changed into a Petal 1 Rise. While my Petal 2 had no monthly or annual fee, the Petal 1 Rise had an $8 monthly membership fee. For a card with very few benefits, paying $96 per year was absurd to me.
No option was provided to product change to another card with no monthly membership fee. I ended up keeping the card for another year, using the credit history I had with it to aid my approvals for other cards. Once I had a solid set of other cards in my wallet to support my credit score going forward, I decided it was time to drop Petal. The process was easier than I anticipated; the representative I spoke with did not try to convince me to keep the card or seem surprised I was closing it.
The information for 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.
With all of the knowledge and credit card experience I have now, I'd definitely handle my first credit card differently if I could go back. I wish I had taken more time to research Petal rather than rushing to open the first card I thought I could get.
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I don't believe anyone anticipated the product change they forced on their customers, but with more research, I would have learned why it's a good idea to stick with major credit issuers instead of startups. Major credit issuers like Chase and Capital One generally follow better practices, like allowing customers to swap to a no-annual-fee card if they want.
I would also have applied for one or two other secured cards, like the Capital One Quicksilver Secured Cash Rewards Credit Card or the Capital One Platinum Secured Credit Card, before writing them off as an option. And since I was a college student at the time, I certainly wish I had looked into student cards.
Getting started with credit cards can feel overwhelming, and experiencing rejection at the beginning can be discouraging. If you've been rejected for a starter card and cannot get authorized user status on another person's credit card, it can feel like you're running out of options. My first, and likely biggest, tip: Don't get discouraged.
Remember that virtually everyone in the points and miles game has been rejected for at least one credit card. If you receive a rejection or two, step back and evaluate your personal situation to see what's going wrong. You might be applying for cards you don't qualify for, or you may not earn enough money to make an issuer feel comfortable lending to you.
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Don't rush like I did when applying for your first card. Stick with the major issuers or your local credit union rather than buying into the promises of startups.
And finally, remember that the credit card world is a marathon, not a sprint. It's better to take your time, do thorough research and know for certain that you're making the right decisions for your wallet.
Sometimes it's acceptable to stray from conventional credit card wisdom. In my case, closing my first credit card was necessary to escape a monthly membership fee that wasn't worth it. If you're currently searching for your first credit card, learn from my mistakes and take your time. Your future self will thank you.
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
