How many credit cards do you have? Would you say you have too many? Just enough? Or are you the type of consumer who prefers to keep it simple with only one credit card? If you’re in that last group you might want to consider adding another card to your wallet. Let’s take a look at why having more than one credit card can be a good thing.

If you can manage multiple credit cards without getting in over your head with credit card debt, here are some of the benefits over using just one.

1. Balance transfers won’t cost you interest free days on new purchases.

If you have an existing credit card that you use for purchases and you take advantage of interest free days, initiating a balance transfer on that card can be a bad idea. You’ll lose interest free days until the balance transfer is paid off in full, meaning you’ll be charged interest both on the balance transfer amount and on all new purchases from the time they’re made.

2. You can better protect your spending power from loss and theft.

Whether you travel regularly or just use your credit card around town, if you only have one then you’re out of luck temporarily if it’s lost or stolen. Don’t end up in a sticky situation without access to the funding you need. Have a second credit card that you keep in a completely different area as a backup plan.

3. A shared credit card and private card help you maintain independent spending.

Multiple credit cards enable you and your partner to pay for common expenses (like monthly bills or home repairs) from a credit card where you’re both authorised users. But then you can still keep your own independent spending power for your personal purchases with a second credit card.

4. Different cards offer different perks.

Different credit cards offer different perks and rewards. While it can make sense to use one card to consolidate your points-earning potential, there are also situations where it makes sense to have more than one. For example, if you travel regularly for business you might want a frequent flyer card like the Qantas American Express Premium credit card. But if you also do a lot of driving, you might want to put some of your everyday purchases on a card like the Citibank BP credit card so you can save on your regular petrol purchases as well.

5. A separate low interest credit card to finance large purchases can save you money.

If you occasionally make large purchases and finance them over time, it’s a good idea to have a separate credit card for those expenses. This way you can keep paying off your everyday spending in full each month on another credit card to avoid interest entirely with interest free days. At the same time, you can take your time paying off larger purchases knowing they won’t affect every other purchase you make.

If none of these benefits really apply to your situation, by all means stick to a single credit card. But if you want more peace of mind, better rewards, and money-saving potential why not consider a new credit card that can give you all three?