When it comes to securing a low interest rate with one of your local mortgage companies, your credit score is one of the most important factors in determining your rate. Even if you’re not planning on making a home purchase in the immediate future, making wise credit decisions now can help secure a lower interest rate in the future.

The determining factors of one’s credit score include how much credit history an individual has, as well as his or her payment history and current levels of debt. While having some level of debt isn’t necessarily a bad thing (for example, if you already have an auto loan), one thing that many mortgage companies are concerned with is whether or not you have payed off past credit payments on time.

Paying off credit payments on time is vital not only for your credit score, but also for your financial well-being. On-time payments help credit users avoid interest rate charges and late fees.

Another action that can cause problems for one’s credit score is opening several new accounts in a relatively short period of time. FICO looks at this as a sign that an individual is preparing to accumulate large amounts of debt.

Making wise financial decisions today can help you achieve a lower interest rate from mortgage companies in the future. And of course, it’s never too late to change your habits to prepare for the future.