BRITS will find it harder to borrow through credit cards and personal loans, according to The Bank of England.
The warning uses loan rates hit their highest level in six years last month.
And the price of borrowing is set to rise even further as the Bank of England (BoE) warned that rates of interest could hit 6% the coming year.
Lenders have reported to the BoE the accessibility to credit cards and personal loans to households fell between July and September.
And according to experts, typical household borrowing is placed to get even harder within the next few months.
This means that anybody approved for a new charge card or personal bank loan people will probably face higher rates.
As banks tighten their lending, the consequences for those who don't get accepted for any new credit card or loan could be extremely detrimental.
Some could be instructed to borrow money in the unregulated buy now pay later sector or through riskier and more costly payday loan firms.
Andrew Hagger of MoneyComms said: "Credit is likely to become harder to obtain as the big providers take a more cautious stance realising more consumers will face financial issues in the near future.
"For those who are eager for credit, it could see more taking expensive pay day loans or even relying on loan sharks."
People's budgets are under pressure in the living costs crisis which and push people into riskier borrowing.
Sarah Coles of Hargreaves Lansdown said: "There's a risk that people will borrow in a desperate effort to make payments, but may find it difficult to repay the debt, so lenders are raising the bar when it comes to deciding who to give loan to."
"It's likely to imply that much more of them get behind on their payments. We're also prone to see an uptick in the type of borrowing they are able to access – like buy now pay later deals."
But it's vital to ask yourself if you actually need to gain access to before committing to a new charge card of personal loan.
If you cannot manage to repay a debt you have now, then you need to avoid getting anymore debt at all costs.
The news about borrowing affordability comes less than a month following the