Since the start of the credit crunch, now more than a year ago, we have seen a constant tightening of lending criteria from banks, building societies and other loan companies, as they have become ever more cautious about the type of person which they are prepared to offer a loan or other credit to.

This has been most noticeable in the mortgage or home owner loan sector, probably because this area has been publicised more than any other, but the same applies to personal loans and credit cards and it would appear that lenders are continuing to restrict their criteria even further.

According to a new report from MoneyExpert.com, somewhere in the region of 75 per cent of all personal loan companies now require the applicant to have a minimum level of income before they will even be considered for a new loan.

Just six months ago, this figure stood at only 68 per cent, which shows lenders are continuing to restrict an individuals ability to obtain credit, at a time when many potential borrowers need a loan more than ever. The same pattern is emerging in the credit card market also, with 47 per cent of all card companies requiring minimum income levels, compared with only 31 per cent at the same time last year.

Sean Gardner of MoneyExpert.com said “Lenders are putting more and more barriers in the way of borrowers as they attempt to keep bad debts under control. Providers of loans and credit cards now not only require good credit histories but increasingly are looking for evidence of a steady income stream and borrowers need to prove they are in work.

While it’s certainly a good thing that those in financial difficulty avoid digging themselves deeper into debt, the recent rise in unemployment figures represents a worrying possibility of many being unable to get access to credit when they need it most.”