Bank Should Check The Finances Of A Person Before Issuing Credit Cards To Them IELTS Writing Task 2

Bank Should Check The Finances Of A Person Before Issuing Credit Cards To Them IELTS Writing Task 2 consists of three sample answers provided below. The task requires the candidates to provide a tentative and argumentative answer for the question. The sample answers comprises two parts: Introduction and body. The introduction is a brief description about the topic. The body contains argumentative statements and tentative answers to support the test-taker's perspective.
IELTS writing task 2 evaluates candidates based on the knowledge and views they have expressed. The areas that candidates are assessed on are grammar, vocabulary, and style. IELTS writing score is marked based on band scores. The band scores range from 0 to 9. Since the topics are very diverse, candidates must go through IELTS Writing practice papers to become familiar with a lot of topics.

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Topic: The reason that most individuals are in debt is due to the overuse and irresponsible use of credit cards. Banks should not issue credit cards unless they are completely sure of an individual’s ability to pay back their debts.
To what extent do you agree with this?

Model Answer 1

There are several instances where one can witness people getting into huge amounts of debts due to inappropriately spending their money. Thus, it is necessary for banks to look after the ability of individuals to be able to pay debt prior to issuing them credit cards. In my opinion this is somewhere true. However, I also believe in the financial stability of an individual at any given point of time. Thus, monitoring and ensuring the appropriate use of credit cards is beyond the abilities of banks.
First and foremost, I would like to highlight that credit cards are used as a tool that is used to improve lifestyles of individuals. In addition to that, few of the individuals also utilise it as a source of establishing their business. Because credit cards are convenient to use and widely accepted in so many locations, people frequently borrow far more money than they need. Unfortunately, some people find themselves in serious financial difficulty because they are unable to repay their loans. If a bank is not totally happy with the financial situation of the applicant, it will often not issue a credit card. Before granting a credit card, they frequently examine a person's income level and loan history. In addition to outlining the potentially severe implications for the customer. Some people use credit cards irresponsibly, though, and accumulate ongoing debt. So it is unjust to hold the bank accountable for the credit card holder's errors. We must recognise, nevertheless, that anyone's financial status might alter at any time. It is impossible to foretell. Credit card users are typically wealthy. But as their financial situation deteriorates, they can eventually find themselves unable to repay the borrowed funds. The bank's estimations may be off in this situation. As a result, debt is incurred by people. I think it could be beneficial if the bank alerts its clients via emails or text messages when they are using their credit cards excessively. It deters users from using it again. Customers should also be able to use their credit cards responsibly for their financial security.

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Model Answer 2

I believe one of the main causes of an individual's debt is the excessive use and exploitation of their plastic money. Banks should offer credit cards to individuals post a thorough background check of the individual. This essay aims at covering the causes of the applicability of excessive credit card use. In addition, I will also highlight the measures that can be considered by banks to deal with these challenges.
First off, since using credit cards doesn't affect their bank balance, people frequently overspend when using them. Psychologically, one looks at his bank balance to determine his liquidity but disregards his growing debt. Second, many think that their existing debts will be paid off by future gains. People overspend on plastic money when future income promises are made. Here, the credit period feature is really important. For instance, assuming I receive a bonus before my payment due date, which is 45 days from today, I spend Rs. 10,000 today.
Before issuing cards, I think the banks will conduct certain checks to determine the user's capabilities. They must examine his financial background first. If he has a history of defaulting, this would be a sign of his propensity to evade payments and his financial instability. The Banks should also look at the source of income. It would demonstrate his inability to pay expenses if there was no consistent flow. For instance, his ability to pay back debts in the future would be in doubt if the bank found out that his only source of income came from winning the lottery.
To summarise, there is a necessity for banks to take certain measures to curtail the risk of indiscriminate credit card use. Prior to the use of plastic money, individuals are to be given education and knowledge of it.

Model Answer 3

Negligence in the use of credit cards can cause huge amounts of debts. Thus, I strongly agree with the notion that banks should check the financial strength of individuals prior to giving them credit cards. In addition to that, banks need to keep a check on the repaying capacity of individuals prior to offering them electronic card facility. This essay will go through how using a credit card improperly might put someone's finances at risk.
Anyone who uses credit cards carelessly risks falling into a debt cycle. Nevertheless, there is still a growing demand for credit cards. People think of credit cards as a way to live better lives. Due to the ease of use and widespread acceptance of credit cards, people borrow more money than they should. Unfortunately, some people end up in serious financial problems because they are unable to repay their loans.
If banks are not totally pleased with the customer's financial situation, they typically won't provide credit cards. Always checking the customer's credit history and financial standing, they also go over the serious repercussions using the card carelessly might have on them. However, many users of the card behave irresponsibly and rack up ongoing debt. Therefore, it is unjust to place all the burden for the credit card holder's errors on the bank. We also need to recognise that a person's financial condition can change at any time. A person could become unwell or lose their job. Both of these scenarios have a significant impact on a person's capacity to pay back his loan. Most of the time, it is impossible to forecast these circumstances and neither the bank nor the consumer have any influence over them.
In conclusion, it's critical for banks to confirm customers' ability to repay debts prior to issuing them credit cards. Customers must also exercise self-control when it comes to their expenditures in order to avoid getting into debt.