Yes and yes, it will.  Let’s say, at 17 years of age you purchase a mobile for €500 and you get a loan from a bank to do this.  You pay off €250 and decide not to pay the rest.  The bank will list you as a defaulting client. What does this mean? For sure, you will be requesting an important loan in the future– to buy a house or to continue your studies – the likelihood is that because of your negative credit history, your request for a loan will be rejected.  It is important to keep in mind that the Central Bank of Malta keeps a register of exposures exceeding €5,000 for each person who holds a loan with a bank.  So the chances are that if you have a negative credit history you may find it difficult to raise a loan from any bank.