Almost 600,000 Australians were listed as possible credit risks last year for not paying their phone or Internet bill, according to leading credit agency Baycorp Advantage.

Figures supplied by Baycorp Advantage to the Australian Communications and Media Authority reveal 595,000 the 63 per cent increase in default listings in the past financial year. The average default amount was $758.

Baycorp Advantage managing director Andrew Want said a default listing could affect a person’s ability to obtain credit, such as mortgages, personal loans or credit cards, for up to five years.

“Consumers should get a free copy of their credit history from Baycorp Advantage to ensure they don’t have a default listing that might stop them from getting credit,” he said.

Baycorp Advantage is the custodian of credit history files for almost 14 million Australians, and facilitates credit reference checks for Australia’s major banks and lenders.

The vast majority of applications for credit in Australia are checked against Baycorp Advantage’s database, which records previous credit applications and defaults.

The Baycorp Advantage figures supplied to ACMA revealed one in five people listed as a credit risk by their telecommunications company was under 25 years old, and more than half were under 35.

Mr Want said 62 per cent of all credit default listings in the past year were from telecommunications companies, more than banks and utility companies put together.

“The increase highlights the need for consumers, especially young people, to manage their mobile phone spending,” he said.

“A lot of people don’t realise that a mobile phone contract is really just a personal loan, and defaulting on the contract by not paying your bill can affect your ability to get a loan or a credit card in the future.

“If a young person is getting a mobile phone and thinks they may have trouble paying the bill should look at pre-paid services, which you can’t default on.

“Banks and credit providers do take previous defaults into account when they determine whether to approve a credit application.

“So if a young person hasn’t paid their phone bill, they might find that in a couple of years they can’t get a loan for a car, or to furnish their first rental home.”

Mr Want said Australia’s current negative credit reporting system only listed credit defaults and applications in a person’s credit history.

“Baycorp Advantage has been arguing for a comprehensive credit reporting system, which would also list how a person has repaid their credit promptly,” he said.

“It is unfair that a consumer can be affected by one unpaid mobile phone bill when the fact they have diligently repaid a credit card or a personal loan on time every month can’t be taken into account.”

Mr Want said consumers should ensure they have no defaults they did not know about, or disputed, by applying for a free copy of their credit history from Baycorp Advantage.

“By calling 1300 76 22 07, consumers can easily get a copy of their history,” he said.

“You can also apply for a copy of your credit history at www.mycreditfile.com.au.

“You will get a copy within 10 days. If you’ve been turned down for credit and need an urgent copy of your history, there is a $27 express delivery service.

“You will have to provide some personal details to confirm who you are, such as drivers licence numbers and your address, before your file can be sent to you.”