To defraud or get fraud?

Finance hygiene is something that came to my mind of late.

Some months back, one of my credit card was used without authorisation for purchase of air tickets from one of the middle eastern airlines. However, as the amount was rejected by the credit card issuing bank, it did not go through.

A phone call was made to the bank to cancel the card in question and request for an issue of a new replacement card. Moreover, despite this being a one off incident, I felt the question of having multiple credit cards surface as part of credit card hygiene.

While we have heard the pros and cons of having credit cards. And the ever increasing foreign transaction fees levied these days for use of credit cards. It leaves behind much to think about weighing in on the safety and worthiness of keeping credit cards though.

Looking beyond the pros and con of using credit card lies the question – to have 1 bank and 2 cards from the same bank or 2 banks and 1 card each? I had a debate and discussion with some friends over these 2 options:

1 bank 2 cards

So this means having 2 cards from the same bank, while it comes with a shared credit limit. Maybe different perks or similar cash back while one becomes a main card, the other a back up. The downside to this is in the event of fraud, you might want to change both cards. The pros will be the convenience of same bill cycle and separation for personal expenses and work related expenses perhaps.

2 bank 1 card

The positive side to having 2 separate bank credit cards is the ability to use them with different credit limit. While it adds additional layer of fraud prevention – since its two different bank, it could also be less prone to credit theft or the opposite since data is transient these days. If worse case scenario 2 banks get the same cyber security breach. On the contrary, it could translate to more fee waiver depending on usage patterns. On the other hand, if one of the bank server for credit card processing is down – it happens sometimes; you still have a back up option from another bank.

What’s the verdict?

While I try not to be bias and more logic in my sharing, it make more sense with 2 banks 1 card.

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