It’s a bad idea to rely on only one credit card for all of your spending, especially if you travel, as my recent credit line slashing experience has proven.
I recommend you get a credit card with a different bank or issuer from the one that gave you the first card. (Our card offers portal is a great place to start.)
Consider the reasons why a back-up credit card is a necessity, especially if you travel frequently:
1) As I learned the other day, your credit card issuer can drastically reduce your credit line without any advance warning, putting you in an awkward situation if you don’t have a back-up method of payment in your wallet.
2) When travelling, you’re more likely to set off the bank’s automated fraud detection algorithms. A temporary freeze on your first credit card could take time to get fixed, especially if you’re in an area without reliable mobile phone reception and you don’t have change on you to use a pay phone (this happened to me in Europe once several years ago; although I actually had coins on me for the pay phone, the bank put me on hold for so long that I ran out of money. It was a nightmare.)
3) Although taking out a cash advance is ill-advised, sometimes it’s necessary, and your first credit card’s cash advance is likely significantly lower than your available credit line. If, say, you have a $4,000 credit line for purchases, your cash advance limit might only be $300 or $400. This is something not a lot of people realise.
4) If your wallet or purse gets stolen, containing all of your debit cards and your primary credit card, it’s a huge relief knowing you have a back-up card hidden in your luggage or in the courtesy safe back at the hotel.
— provided by Outlaw; read more about which credit cards I recommend (and don’t recommend).
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