Credit history and financial responsibility have become increasingly frequent topics in IELTS Writing Task 2 examinations. Based on analysis of past tests, questions about credit management appear approximately once every 4-5 months, particularly in countries with developed credit systems like the UK, USA, and Australia. Let’s examine a recent IELTS question on this topic.
Question Analysis
Some people believe that maintaining a good credit history is crucial for financial stability. Others think credit ratings put too much pressure on individuals. Discuss both views and give your opinion.
This question requires candidates to:
- Discuss two opposing views about credit history
- Present balanced arguments
- Provide a clear personal stance
- Support ideas with relevant examples
Sample Essay 1 (Band 8.5)
In today’s financial landscape, the debate over the significance of credit history has intensified. While some consider it fundamental for economic wellbeing, others argue that it creates unnecessary stress. In my view, while credit monitoring systems can be demanding, their benefits substantially outweigh the drawbacks.
Those who advocate for the importance of credit history present compelling arguments. A strong credit record enables individuals to secure favorable interest rates on loans and mortgages, significantly reducing long-term financial burdens. Moreover, many employers now review credit reports during hiring processes, making good credit crucial for career advancement. For example, importance of credit monitoring for loan approvals shows that individuals with excellent credit scores can save thousands of dollars annually on various financial products.
However, critics argue that credit rating systems place excessive pressure on people. The constant need to maintain perfect payment records can cause anxiety, particularly during economic downturns when meeting financial obligations becomes challenging. Furthermore, simple oversights or temporary setbacks can damage credit scores for years, potentially creating a cycle of financial stress.
Despite these concerns, I firmly believe that credit history monitoring serves as an essential tool for financial stability. While the system may seem demanding, it encourages responsible financial behavior and provides lenders with necessary risk assessment metrics. The pressure to maintain good credit actually promotes financial discipline and long-term planning, ultimately benefiting individuals and the broader economy.
Impact of credit scores on major financial and life decisions
Sample Essay 2 (Band 6.5)
Nowadays, credit history is very important for many people. Some people think it helps with money management, but others say it makes life difficult. I will discuss both sides and give my opinion.
On one hand, good credit history helps people get loans easily. When someone wants to buy a house or car, banks check their credit score. If they have good credit, they can get better interest rates. Also, some companies check credit scores before hiring new workers. This shows that credit history affects both money and jobs.
However, maintaining good credit is not easy for everyone. People must pay bills on time and not use too much credit. Sometimes, when people lose their jobs or get sick, they cannot pay bills, and their credit score goes down. This makes their life more stressful and difficult.
In my opinion, credit history is necessary but the system needs improvement. While it helps banks know who to trust, there should be more understanding when people face problems. Maybe the system can be more flexible for people with temporary difficulties.
Key Vocabulary
- credit history (n) /ˈkredɪt ˈhɪstəri/ – record of how someone manages credit
- financial stability (n) /faɪˈnænʃəl stəˈbɪləti/ – steady management of money
- oversight (n) /ˈəʊvəsaɪt/ – unintentional mistake or error
- compelling (adj) /kəmˈpelɪŋ/ – convincing; forceful
- metrics (n) /ˈmetrɪks/ – system of measurement
Conclusion
Credit history continues to be a significant topic in IELTS Writing Task 2. Practice writing about related themes such as:
- The role of credit scores in modern society
- Financial responsibility in the digital age
- Banking systems and personal finance
Share your practice essays in the comments section for feedback and improvement suggestions.
