Ah, the first credit card—the rite of passage into the adulting world, much like your first awkward dance at a school prom. It’s exciting but can come with its own set of complexities, especially when that annual fee starts to feel like a pesky ghost floating around your wallet. If you’re considering cancelling it because you barely use it, let’s break down what that really means for your credit history and score.

First things first, credit scores are a bit like your high school report card—except instead of grades, you get numbers that dictate your financial future. One of the key components of this score is your credit history. When you cancel your first credit card, you might think you’re just waving goodbye to a relic of your past, but you could be putting your credit score on a bit of a rollercoaster ride.

The length of your credit history plays a significant role in your score. The longer you have credit accounts, the better it looks to lenders. Cancelling your first card can shorten that average length, especially if it’s one of your oldest accounts. It’s like cutting ties with your childhood best friend—you might feel free, but you also lose some of those fond memories.

Now, let’s sprinkle in some numbers. When you cancel a credit card, particularly one with a high credit limit, you might also increase your credit utilization ratio. Think of this as your financial 'credit score diet.' If you have a total credit limit of $10,000 and you’re using $2,000, your utilization is 20%. But if you chop that card with a $2,000 limit from the mix, your total limit drops to $8,000. Now your utilization jumps to 25%, which can be seen as a red flag to lenders.

But hold up! Just because you feel the urge to cancel doesn’t mean you have to. If that annual fee is making you cringe, consider reaching out to your credit card issuer. They might have a lower-fee option or even waive the fee for loyal customers, kind of like when your favorite show offers a spin-off after a successful season. If you can keep the account open with a lower fee or even no fee, you can maintain that valuable credit history without the financial burden.

If you’re set on cancelling, don’t panic just yet. The impact on your credit score might not be as dramatic as a plot twist in a season finale. It could dip temporarily, but with responsible credit use on your other accounts, you can bounce back. Plus, good habits like paying off your balances in full and on time can help mitigate the effects of that cancellation over time.

Ultimately, it’s all about weighing your options. If you’re not using the card and the fee feels like a bad plot twist in your financial story, cancelling might be the move for you. Just remember, your first credit card is a part of your financial journey, and while it might feel like closing one chapter, there are plenty of pages left to fill. Keep an eye on your overall credit strategy, and you’ll navigate this like a pro—no ghosting required.