Banks are tightening their lending restrictions to consumers and businesses, the Wall Street Journal reports.

Two-thirds of domestic banks tightened their lending terms for credit cards and other consumer loans between April and July. About one-third did so for credit cards and one-half for other loans during the previous three months.

In addition, banks are raising minimum credit scores for consumer loans and lowering credit limits on credit-card accounts, according to a July survey of loan officers conducted by the Federal Reserve.

The survey found that 60 percent of domestic banks expect to tighten standards for credit-card loans in the latter half of the year. More than half of the banks said they probably would extend the tougher restrictions for the first six months of 2009.

About 75 percent of the banks said they tightened lending standards for prime mortgages and about half said they would do more tightening in the second half of the year. Many banks have set more restrictive terms on nonprime loans as well.

Business loans are becoming more restrictive, too. Some 60 percent of banks reported implementing tougher lending standards for large- and medium-size companies in the prior three months. Two of three did so for small businesses, up from about half in April.

The bottom line is that it is becoming more difficult to obtain loans. Some analysts worry this trend will depress consumer spending and further harm the economy.

But the tougher lending standards are a natural reaction to the credit problems that have arisen in recent years. It will not hurt the economy in the long run for consumers to do a little belt-tightening.