Currently our credit is pretty dismal. I don't know the exact score but I know it's low. Last time I checked it was like 500-something.
Back in 2006 I was contracting in Iraq. In December of that year I bought a brand new truck and then returned to the states the following January. We struggled to pay the note on that truck, the house, and my wife's SUV. In 2008 I called Citi and did a voluntary repossession....
Fast forward to today. I am back contracting in Afghanistan. I am making good money. My wife's SUV has been paid off, (the motor has since died and we will be buying a used vehicle for CASH when I go on R&R in June). All of our bills are current and we do not have any debt other than the house and our standard monthly bills, (cable, phones, lights, etc...) We haven't had credit cards in years so that's not an issue.
What can we do to raise our score. I know it's still pretty low, (exactly how low I'm not sure at this point but I know it sucks).
Also, with the money I am making we can pay off our house in about a year, (still owe about $70k), and have money let over. Should we pay the house off or just keep making the payments as normal and bank the money? We still have about 18 years left on our mortgage, (bought the house in January of 99), and I just hate the thought of having to make those $1100 payments for the next 18 years.
Another thing, from now until I go on R&R in June, we can have about $40k in the bank. We are going to use part of that to pay cash for a used vehicle. Would it be a good idea to set aside the money for the vehicle and then get a loan from our credit union using that money as collateral and buy the vehicle that way? If we did that we would pay the vehicle off in about 6 months to a year and then still have our original amount when the vehicle is paid off.
Ultimately I want to have the house paid off and some money set aside for our girls, (12 and 3 currently), to go to school on. At some point in our future a piece of land to retire on would be tossed in the mix as well.
Man, when its typed out like that it seems like its so far away. Also, Im 44 and my wife is 42 although we are not "old" we do feel that time is of the essence!