Credit Card Debt Much More Fun When Experienced With Friends

from the what-about-a-free-t-shirt-for-signing-up? dept

Although there’s been a big rush of investment into the social networking space, it still hasn’t been a huge moneymaker. Until MySpace sold its search and advertising rights to Google, the company was having a hard time monetizing its enormous page views. One way in which brands are using the sites is by creating profiles for themselves, and then inviting users to be their friends. But it’s unclear how far they can take this, or whether users will tire of having their friend list populated with advertising. Today, J.P. Morgan announced a deal to become the sole credit card sponsor on Facebook. At first blush this would seem like yet another crude attempt at attaching its brand to the popular site. But the deal is actually a bit more sophisticated; it appears that Facebook users will be able to share rewards points with others. The example they cite is that a college fraternity could get points towards a new TV. It’s unclear whether people will sign up for a credit card just because it’s on Facebook, but the move is a step in the right direction. Social networking (or networking of any kind) is a means to an end, so deals that help groups accomplish certain goals are a smart way to use these sites.

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Comments on “Credit Card Debt Much More Fun When Experienced With Friends”

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Anonymous Coward says:

“It’s unclear whether people will sign up for a credit card just because it’s on Facebook…”

While I doubt many would go after a particular bank’s (read: financial institiution) credit cards by themselves, they most certainly would fall to peer pressure to GET the card (the cited example is perfect), and once they have it… they will use it.

Not so sure I like the idea of leveraging peer pressure upon kids from other kids to indebt themselves… but its certainly not illegal.

BillDivX says:


yeah, a little morally questionable for promoting irresponsible use of credit. But, I gotta give em the points for a novel and risky move, which does have some upsides that benefit their customers. College Fraternities, roommates, bandmates, can now all get this card, and afford something that the group needs, which none of them could have handled independently. That certainly happens a lot in bands, with PAs, mixers, effects, and microphones being very expensive, and something that the whole band uses and must maintain.

Anonymous Coward says:

Woot! New business model for me!

I jsut came up with a new personal business model.

1. Make really cool (but ultimately fake, cause I’m just not cool) myspace page. Pretend I have something I have to purchase to achieve some goal.

2. Convince a whole bunch of people to get that card, and give all their points to me. It woudl be easy, after all they only have to pay for stuff they are already buying with it, they dont have to buy anything else.

3. …

4. Profit!

Insaniac says:


who said that sharing points with friends is irresponsible? that seems to be a pretty big jump from the peer pressure comment given by the anonymous coward in the first post.

Not to mention the fact that peer pressure generated by financing companies is hardly the most menacing form of peer pressure that a fraternity member is going to be exposed to.

regardless, the point is that a company has finally attempted to come up with a viable business strategy that works with, not against, modern mainstream technology.

I think they should be commended for a job well done. Positive reinforcement is a good idea for actions we would like to see again from this company and others.

Nice work JP. Way to lead the pack.

Anonymous Coward says:

Re: bandwagon?

“peer pressure generated by financing companies is hardly the most menacing form of peer pressure ”

Hey, do yourself a favor, look up the definition of peer pressure. Then maybe you will understand the original post.

“who said that sharing points with friends is irresponsible?”

You got me. Who said it? /scrolls up. Oh, noone here. You must have been reading another blog.

The Truth Beacon says:

Re: Re: bandwagon?

The first, third and fourth comments make reference to this being an irresponsible tactic which I believe is what the parent post to you was rebuffing.

I applaud JP Morgan for this move to embrace technology rather than claiming that technology is infringing on or hindering their business model. I dislike credit cards, but I will certainly apply for one of those cards, and possibly use it a few times to show my support for the idea.

Insaniac says:


hey coward….try reading the remarks left by BillDivX in post 4: “yeah, a little morally questionable for promoting irresponsible use of credit”

Hmm….sounds like someone calling into question the morality of sharing points and asking how responsible it is. I could be wrong though….you be the judge.

And, regarding the first post, i fully understand the point made. The definition of peer pressure has no bearing on my problem with the post whatsoever. I am simply calling attention to the fact that a person being inluenced to sign up for a credit card is much less of a concern than that same person being pressured to participate in illegal activities or activities that could jeopardize that person’s health…such as drinking to the point of alcohol poisoning or participating in extreme hazing.

So, do yourself a favor….take a comprehensive reading class and then reread my post. You may grasp a little bit more than you did the first time.

David (user link) says:

Credit card debt

The real fee problem with a debit card comes from your own bank — the card issuer may charge you up to 3% for a foreign transaction, including an ATM withdrawal. Call your bank long before you go — if you don’t like the fee, call around and ask what other banks are charging for foreign transactions made with a debit card; be sure to ask what, if any, fees the bank will charge for an ATM withdrawal made on foreign soil.

Joshua (user link) says:

Debtors on Borrowed Time

John Froonjian wrote a fascinating article on how debt is becoming the American way of life. Credit has become too easy to get, and too many people get trapped into a cycle of debt.

Mr. Foornjian’s article refers to a woman on a Shopping Addicts Support board who stated that she was over $100K in debt from shopping trips, and that she opened cards without her husband’s knowledge. It seems hard to believe, but I’ve seen first hand other women who have admitted to selling plasma to be able to afford to buy specialty clothing for their children, and to hiding their purchases from their husbands.

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