According to the Federal Reserve’s quarterly survey of senior loan officers at U.S. and foreign banks, credit remains especially tight for most types of loans. Banks have been tightening their standards for loans since 2007, long before the financial panic of 2008. Moreover, recent legislation has outlawed some practices that allegedly were harmful to consumers; in response, many lenders have tightened standards for credit cards.
Generally, bank "tightening" means you need a higher credit score to get a loan. You’ll probably pay higher interest rates, if your score is less than ideal, and you may have to put up more collateral for loans. Generally, interest rates on credit cards may head north.
There were a couple of bright spots in the Fed’s report, though. A few banks reported that they were easing standards for "prime" residential mortgages, which are loans to creditworthy borrowers, and some banks said they were more willing to make consumer loans.
The bottom line is that if you want to buy a car, buy a home, or finance home improvements, you’ll need to be creditworthy to get a loan at a reasonable rate. Be sure to pay all your bills on time, especially for credit cards and other types of loans.