tight credit
Restricted borrowing conditions
Tight credit describes lending conditions when banks and other financial institutions are reluctant to make loans, typically demanding higher interest rates, stronger collateral, or stricter qualifications.
The opposite of loose or easy credit.
Tight credit often follows economic downturns or financial crises when lenders become risk-averse: Small businesses struggle to expand during periods of tight credit.
- lendingTemporary provision of resources
- squeezeFirm bilateral compression
- crunchCrushing, grinding noise
- banksFinancial institutions or riversides
- loansBorrowed money arrangements
interest · interest rates · borrowing · loan shark · recession · financial crisis · liquidity · austerity · default · debt · rationing · scarce · restrictive · mortgage · collateral · risk · risk aversion · cash
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