By Kate Perry – Courier Mail

June 11, 2008 12:00am

• Lenders are not as free and easy with credit as they were
• The number of people checking their credit has doubled this year
• Unpaid bills will sit on your credit report for up to 5 years

THE days of easy credit are over, with lenders make it tougher to borrow money, and consumers struggling with mounting debts, credit agency Dun & Bradstreet says.

D&B said as it becomes tougher to borrow money more people are taking an interest in their credit status.

Since December last year the number of the number of Australians checking their credit file has more than doubled. D&B said this could be because more people are being denied credit or just want to check their credit is in good order before applying for money.

Your credit records are checked whenever you apply for mainstream credit - whether it’s a credit card, bank loan or in-store finance.

Data out yesterday from the Australian Bureau of Statistics showed that Australians’ appetite for credit has not dimmed. Total personal loans rose 5.8 per cent in April to $6.9 billion, up from $6.5 billion in March.

Lenders toughening up

D&B’s chief executive Christine Christian says the days of easy access to credit have come to an end and lenders are becoming choosier about who they’ll deal with.

“In the current environment banks are only willing to lend to those that don’t have adverse information on their record- they won’t take a risk on anyone with outstanding debts, missed payments or court actions against their name,” she said.

Unpaid bills linger

Not paying a utility or phone bill can leave a stain on your credit report that will take up to five years to clear. Paying the bill late will not be enough to clear your record. If there’s a blight on your credit report you’ll find it all but impossible to get access to mainstream credit like bank loans or credit cards.

You can get a copy of your credit report by contacting credit agencies like Dun & Bradstreet or Veda Advantage.

Protect yourself

It’s important to protect yourself from other people’s debt. If you live in a shared house, but it’s your name on the utility or phone bill, it’s you the debt collectors will come chasing.

If you’re in a relationship, make sure you read the fine print before agreeing to go guarantor on a loan, or putting your name to a bill. If the romance turns sour you could be lumped with the repayments, or ‘sexually transmitted debt’  .

If you are behind in your bills and have debt collectors knocking on your door, make sure you know your rights. Never ignore late payment demands or phone calls from debt collectors, instead try to negotiate a payment plan.

Tags: Credit files