A Quick Reality Check on Financial “Advice”

Financial tips

A Quick Reality Check on Financial “Advice”

Posted by Infinite Wealth Advisors, LLC
5 years ago | December 4, 2019

We hope you enjoyed your Thanksgiving holiday, and enjoyed your time with family or friends. Since talk over the dinner table often turns to everyone’s plans for the future, occasionally talk of finances comes up. And inevitably, you’re going to hear some questionable advice when chatting at seasonal get-togethers.

No one is intentionally trying to mislead you, but we’d like to offer a quick reality check for these common “tips”.

Is it wise to open credit cards for the lucrative rewards programs? This one is partially true. Yes, it’s a good idea to keep two or three credit cards on hand, both for credit-building purposes and to finance emergency expenses. They might as well carry valuable rewards programs.

But no, you shouldn’t open a credit account each time you receive a tempting offer. Holding too many card accounts can actually damage your credit score. Also, sometimes those reward programs aren’t all they’re cracked up to be. If you feel tempted to overspend just to reach certain reward levels, you’re not really saving money.

Should you stay loyal to one bank forever? For some reason, many people believe long term loyalty to a particular bank will earn them certain perks. Others emphatically claim that closing accounts and moving to a new bank will harm your credit score.

It’s important to remember that the point of a bank is to provide a service. If policy changes, low interest rates, or something else has you feeling less than thrilled with your bank, then switching is not a bad idea at all. It is wise to seek the best service that truly suits your needs, and you could earn more by shopping for a bank with a competitive savings rate.

And no, switching banks will not impact your credit score.

These are just two common misconceptions that many people tend to spread through small talk. If you’ve heard any other questionable financial tips, don’t hesitate to give us a call. We can set the record straight and hopefully reassure you, and together we will chart a course for your future based on sound, time-tested wisdom.

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