The latest local news, weather and high school sports from the Heartland

KIRKSVILLE, MO. -- With the tough economy, many of you are trying to get your finances in order and that means, increasing your credit score.

We talked to Rudy Riley, President of Northeast Missouri State Bank to get some insight into how credit scores function. According to Riley, if you want to increase your credit score, the most important thing to do is pay all of your credit card bills and loans on time.

"I've seen people with $100,000 in credit card bills and never had a late payment and they'll have a high credits score, " said Riley.  "You may see someone that's got a $1,000 balance but they've been late five or six times in a year and they'll have a lower score. So, making your payments on time is pretty important. "

Riley said a credit score of 650-700 is decent, between 700 and 800 is good, and above 800 is considered great, but very rare. According to Riley, it takes seven years before items are removed from your credit score.

Here are several habits or actions that Riley mentioned during our interview that can negatively affect your credit score:

1. Having bills such as hospital bills reach a collection agency before you pay them. Riley said that will lower your credit score.  

2. Judgments

3. Bankruptcy

4. Keeping high balances and not paying them off every month. Riley said it's recommended that you keep your credit card balances at 60% or below the credit limit of the card. He said asking the credit company to lower your credit limit can also negatively affect your credit score. He recommends leaving it at the level the company sets.

5. Having more than three credit cards

6. Closing credit card accounts - Riley said it's better to keep them open and instead not use them.  

7. Having too many inquiries into your credit score within a short period of time.

Riley said at his bank, the credit score is not the "gospel" but rather used as a tool when providing someone a loan. He said they also consider the person's current income, and why they may have had late payments.  

Household monthly bills such as cell phone, electric, and gas bills do not show up on your credit report unless you do not pay them and they end up at a collection agency.