Risky borrowers are no longer obtaining loans, but tighter underwriting guidelines are now keeping otherwise safe borrowers on the sidelines.

The Wall Street Journal has more on how this is impacting the financial markets and the overall economy:

The clearest sign of tighter credit standards are seen in average credit scores, which in June stood nearly 50 points above their pre-housing bubble levels. Credit scores are not only higher, but they also understate the quality of recent borrowers, who have earned these scores during a much tougher environment. In the early 2000s, borrowers had an easier time building their credit because unemployment was low and home prices were rising. In other words, a 750 credit score coming out of the financial crisis counts for more it did ten years ago.