The star auditioned for the role of vampire Edward Cullen, but the part went to the British actor, who has since gained a massive cult following.
Fernandez admits he would have struggled to cope with overnight fame, but he's grateful for the opportunities he's received since he was turned down for Twilight.
He tells Vman magazine, "No one had any idea what Twilight would become. At the time, it was just another audition. I didn't realise I was missing out on stardom and giant pay cheques.
"Now, looking back on it, I certainly wouldn't have been mentally stable enough to deal with all that. Lucky for me, not getting that part led to other work that was a much better fit for me."
Fernandez stars in upcoming movie Red Riding Hood, which is directed by Catherine Hardwicke - who oversaw the first Twilight movie.