A credit card branded with a broker network’s name? Bad idea, say some brokers, but not John Dearin, he and thousands of others welcomes this latest development.
I am lost as to how providing credit cards is contrary to the primary mandate of mortgage brokers, let alone how it could ever be called “unprofessional.” We, as brokers, provide mortgages, and we will continue to provide mortgages. Credit cards are just an extension of our services, just as some of us provide life insurance and mutual funds.
Still, others have suggested (the offering) will make us no different from those “hawking credit cards at the mall.” Well, who is selling credit cards at the mall? I ask. EVERYONE.
Just about every store now has credit cards, phone cards, gift cards. It is not the provider of credit cards that is the problem; it is the people that abuse them. Next we will have to give up providing gambling, alcohol sales, driver’s licences, etc., because there are those out there who will abuse them.
Two years ago I was approached at the Halifax Airport by a person selling CIBC credit cards. Not professional, you say? I don’t agree. I took one. Here is the problem: my original $5,000.00 limit has increased to $35,000 in two years.
I see no less professionalism in selling credit cards than in selling "B" money. There is a need; it will always be with us. Why should we leave it in the hands of bankers? The sooner we can compete with offerings to our clients that the banks can offer, the sooner we will be able to compete with the banks and increase our client base.
I will sell, hawk, or push these credit cards on my clients as they need them to establish credit to even get a mortgage, BUT I will first look at their credit reports to see if they deserve one. If they don't, they can go to the banks and get one.
About the writer:
John Dearin is an industry veteran and franchise owner of Dominion Lending Centres Mortgages and More. He is based in St. John’s , Nfld. and is a former auditor with Revenue Canada.