Aug. 25, 2023
IELTS Writing Task 2 Essay
The reason that most individuals are in debt are due to the overuse as well as irresponsible use of credit cards, banks should not issue credit cards unless they are completely sure of an individuals’ ability to pay back their debts. To what extent do you agree with this?
Many individuals find themselves in debt because of their reckless overspending with credit cards. This leads to some arguing that a bank should only grant credit cards to applicants when it is certain of their ability to repay debt. I completely disagree.
Firstly, card issuers have the capability to examine the credit reports of applicants who have prior credit history to gain insights into their spending patterns and make decisions regarding approvals, credit limits, and interest rates. However, this approach cannot guarantee that cardholders will not exceed their credit limits. Unanticipated expenses such as medical bills or sudden car repairs can push individuals beyond their planned budgets. Additionally, unforeseen life events like illness or job loss can have adverse effects on one's financial stability, impairing their capacity to meet debt obligations. Even individuals with commendable credit scores may find themselves in debt as a result of these unpredictable circumstances. Consequently, requiring that issuers grant credit cards only when they are confident about their applicants' ability to repay is unfeasible.
Secondly, it is challenging, and at times even impossible, for issuers to gauge the financial habits, spending behaviors, and credit management capabilities of first time applicants due to their lack of prior credit history. There is no surefire tool or formula that can provide an accurate prediction of whether someone will become an impulse buyer who accumulates debt every month or a prudent spender. Demanding that financial institutions must have absolute certainty regarding the repayment capacity of such applicants before granting a credit card is impractical. Such a requirement would likely result in very few, if any, approvals for first-time credit card applicants, hindering the introduction of new users into the credit system.
In conclusion, issuing institutions cannot predict the spending habits of first-time cardholders or any of several situations that may lead to debt. As a result, they never can be absolutely sure of anyone's ability to pay off their debt.
IELTS Writing Task 2 Essay
The reasons that most individuals are in debt are due to the overuse, as well as the irresponsible use of credit cards, b. Banks should not issue credit cards unless they are completely sureconfident of an individuals’ ability to pay back their debts.
To what extent do you agree with this?
Many individuals find themselves in debt because of their reckless overspending with credit cards.
This leads to some arguing that a bank should only grant credit cards to applicants when it isthey are certain of their client’s ability to repay the debt.
I completely disagree.
Firstly, card issuerissuing agencies /institutions have the capability to examine the credit reports of applicants who have prior credit history to gain insights into their spending patterns and make decisions regarding approvals, credit limits, and interest rates.
However, this approach cannot guarantee that cardholders will not exceed their credit limits.
Unanticipated expenses such as medical bills or sudden car repairs canould push individuals beyond their planned budgets.
Additionally, unforeseen life events like illness or job loss can have adverse effects on one's financial stability, impairaffecting their capacity to meet their debt obligations.
Even individuals with commendablegood credit scoreratings may find themselves in debt as a result of these unpredictableforseen circumstances.
Consequently, requiring that issuersing agencies grant credit cards only when they are confident about their applicants' ability to repay is unfeasibleimpractical.
Secondly, it is challenging, and at times even impossible, for issuers to gaugeagencies to predict the financial habits, spending behaviors, and credit management capabilities of first time applicants due to their lack of prior credit history.
There is no surefire tool or formula that can provide an accurate prediction of whether someone will become an impulse buyer who accumulates debt every month or be a prudent spender.
Demanding that financial institutions must have absolute certainty regarding the repayment capacity of such applicants before granting a credit card is impractical.
Such a requirement would likely result in very few, if any, approvals for first-time credit card applicants, hindering the introduction of new users into the credit system.
In conclusion, issuing institutions cannot predict the spending habits of first-time cardholders or any of the several situations that may lead to debt.
As a result, they never can be absolutely sure of anyone's ability to pay off their debt.
Aug. 26, 2023
Thank you very much.
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IELTS Writing Task 2 Essay This sentence has been marked as perfect! |
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The reason that most individuals are in debt are due to the overuse as well as irresponsible use of credit cards, banks should not issue credit cards unless they are completely sure of an individuals’ ability to pay back their debts. The reasons that most individuals are in debt are due to the overuse, as well as the irresponsible use of credit cards |
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To what extent do you agree with this? This sentence has been marked as perfect! |
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Many individuals find themselves in debt because of their reckless overspending with credit cards. This sentence has been marked as perfect! |
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This leads to some arguing that a bank should only grant credit cards to applicants when it is certain of their ability to repay debt. This leads to some arguing that a bank should only grant credit cards to applicants when |
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I completely disagree. This sentence has been marked as perfect! |
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Firstly, card issuers have the capability to examine the credit reports of applicants who have prior credit history to gain insights into their spending patterns and make decisions regarding approvals, credit limits, and interest rates. Firstly, |
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However, this approach cannot guarantee that cardholders will not exceed their credit limits. This sentence has been marked as perfect! |
|
Unanticipated expenses such as medical bills or sudden car repairs can push individuals beyond their planned budgets. Unanticipated expenses such as medical bills or sudden car repairs c |
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Additionally, unforeseen life events like illness or job loss can have adverse effects on one's financial stability, impairing their capacity to meet debt obligations. Additionally, unforeseen life events like illness or job loss can have adverse effects on one's financial stability, |
|
Even individuals with commendable credit scores may find themselves in debt as a result of these unpredictable circumstances. Even individuals with |
|
Consequently, requiring that issuers grant credit cards only when they are confident about their applicants' ability to repay is unfeasible. Consequently, requiring that issu |
|
Secondly, it is challenging, and at times even impossible, for issuers to gauge the financial habits, spending behaviors, and credit management capabilities of first time applicants due to their lack of prior credit history. Secondly, it is challenging, and at times even impossible, for |
|
There is no surefire tool or formula that can provide an accurate prediction of whether someone will become an impulse buyer who accumulates debt every month or a prudent spender. There is no surefire tool or formula that can provide an accurate prediction of whether someone will become an impulse buyer who accumulates debt every month or be a prudent spender. |
|
Demanding that financial institutions must have absolute certainty regarding the repayment capacity of such applicants before granting a credit card is impractical. This sentence has been marked as perfect! |
|
Such a requirement would likely result in very few, if any, approvals for first-time credit card applicants, hindering the introduction of new users into the credit system. This sentence has been marked as perfect! |
|
In conclusion, issuing institutions cannot predict the spending habits of first-time cardholders or any of several situations that may lead to debt. In conclusion, issuing institutions cannot predict the spending habits of first-time cardholders or any of the several situations that may lead to debt. |
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As a result, they never can be absolutely sure of anyone's ability to pay off their debt. This sentence has been marked as perfect! |
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