ANALYSIS-US credit mess chips away at consumer financing

By Emily Kaiser

WASHINGTON, Dec 7 (Reuters) - From electronics stores to car dealerships, U.S. lenders are subtly scaling back easy financing terms as tightening consumer credit conditions spread beyond the housing market.

With signs that spending is already sagging under the weight of the housing downturn and steep food and energy prices, retailers are reluctant to take away too many of the popular promotions for fear of turning off shoppers, retail and credit analysts said. That means you can still buy a big plasma television with zero-interest financing, but this holiday season you may have less time to pay it off before interest payments kick in.

Automakers are still advertising no-interest loans, yet the average interest rate on new car sales has crept up since housing-related worries began roiling financial markets this summer.

Anecdotal evidence suggests credit card issuers are also showing more restraint, approving applications by the thousands but tweaking some of the fine-print fees or policies.

"There's definitely been some tightening. Most of the changes we've seen have been fairly subtle," said Curtis Arnold, consumer advocate and founder of CardRatings.com, which tracks the credit card industry.

"We've heard more complaints about credit lines being decreased. We've been seeing the length of introductory

(offers) diminish. Instead of giving 12-month offers at zero percent interest, we're seeing nine or six months. The fees on balance transfer offers have gone up," he said.