by Joseph Kenny | 10/5/08

While some financial experts advise caution when applying for credit cards, others say it's a wise financial idea to have an extra credit card around. Although it can be difficult to keep track of more than one card, having an extra card can make financial sense.

For instance, an extra card provides you with a kind of financial safety net. If your wallet is lost or stolen and your main card turns up missing, you can rely on your extra card to get you through until you recover your main card.

Another benefit of having an extra card is that it can provide you with important rewards. Such cards can provide you with both cash back and frequent flyer miles, making them an attractive financial tool.

An extra card can also be good for your credit score. Although your credit score may initially suffer when you apply for a second card, if you maintain a good debt to credit ratio, the card can be helpful over the long term.

A second card also enables you to stagger your bill paying. Your one credit card bill may be due at the beginning of the month; your second, at month's end. You can then time your purchases to coincide with when your bills are due. Such a technique can maximize your leverage as a consumer and make the whole credit card experience less stressful.

In addition, if you run into financial trouble, you can transfer the balance from one card onto the second. This is a particularly good strategy if you have a low or 0% interest option on the second card.

Granted, it can be a little daunting to juggle more than one credit card, but, in the end, such a policy can be well worth the effort. If you end up saving a significant sum of money, you'll be grateful that you had the second card to play with.