Reasons why it is good to have several credit cards

Loyalty to family is admirable, but limiting yourself to breeding Credit cards from a single bank can be a tie that binds you.

Sure, having all your cards under the roof of one bank can simplify bookkeeping, and may even give you access to “relationship” bonus rewards. It can make reward redemptions seamless and sometimes more valuable if you're able to bundle those rewards across multiple cards.

But if you never venture beyond your own bank's nest, you could miss out on more valuable rewards, perks, and features. Here are some reasons to diversify.

richer incentives
Reward rates and sign-up premiums vary widely between issuers, and can be effective lures. A 2019 study by JD Power found that in a 12-month period, 45% of credit card customers switched cards for a better rewards program, and 18% switched for a sign-up offer, says John Cabell, Director of Banking and Payments Intelligence at JD Power.

Katie Brewer, a Certified Financial Planner with Your Richest Life, a financial planning company, went from an airline credit card to a general travel card from another issuer. "We moved to one that's a little more flexible where you can use it (for) travel rewards, or you can make a gift card, or you can make cash," he says.

Read More: Things to consider before taking out the credit card

Even if your bank already offers a card that fits your needs, try combining it with a product from another institution to maximize rewards. If your bank's credit card earns 1.5% back on all purchases, get a card from another issuer that earns 3% back on specific bonus categories where you spend a lot and use the cards together .

additional benefits
Especially for frequent travelers, the secondary benefits can be significant. Their Credit cards Today's may offer protections like extended warranty or cell phone insurance, but it may not come with rental car insurance or lost baggage reimbursement. And it almost certainly won't give you juicy travel perks like airport lounge access.

For that, you'll want one of the Credit cards of travel that earns miles or points. The best ones don't charge fees for foreign transactions, so if your current card works… or if it doesn't work with Visa or Mastercard, the two most widely accepted payment networks internationally… it may be time to look elsewhere.