CreditworthinessMoney remains a touchy subject, and many people sport bad financial habits that make it expensive to finance a long-term project such as buying a house. In fact, many are embarrassed to seek expert help to rein in their terrible money habits, and it only serves to dig them deeper into a financial cesspool.

Although it may not seem obvious, your ability to secure the best mortgage rates ties closely with your financial history. Lenders have to run your credit history before making an approval. You stand a better chance of keeping the interest low and affordable when you have a rich financial history, so here are a few tips to that end.

Do not carry too much debt

Many people push their credit facilities to the limit, often maxing out several credit cards. As a result, they ruin their credibility with the lending institutions. Using more than 30 percent of the card limits raises a red flag about your spending habits in addition to lowering your credit score. It also means you have a little disposable income after paying off your current debt to pay other lenders. Therefore, you might struggle to make timely repayments on additional loan facilities.

Don’t delay paying your bills

Your commitment to paying your current bills including gas and credit card plays a significant part in determining your creditworthiness, Altius Mortgage Group says. Late payments, by more than 30 days, have a severe effect on your history and could cause you great pains. Remember, mortgage lenders are joining your list of creditors, and if you have a history of mistreating your current creditors, they are unlikely to take you on as a client. Keep a timetable with the due date of various bills and pay them in full for best results.

Many people fail to make the connection between their current money habits and their future financial plans and it works against them. By adopting sound financial practices, you create a credible financial history that impresses prospective lenders.