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Will bad credit interfere with a security clearance?


ZphisticatedLady
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divemedic is correct. Your credit history can be seen as a security risk. So can your relatives, any addictions you have or have sought treatment for, your lifetime travel history and too many other things to list. What constitutes a security risk is relative to the level and scope of the security clearance required.

I wouldn't be overly concerned about your credit history at this point. There is really nothing you can do to change the history they already have and if you seem worried about it it may raise a red flag.

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Add a consumer statement to any remaining negatives you have on your reports, and have backup documentation available to share with your security manager (I'm assuming you're applying for a gov't Secret or Top Secret clearance). This might not make much a difference for consumer credit purposes, but it will influence how your investigator views the record. If you have been making progress and have no recent items, you should be able to establish trajectory and be good to go. Also, you will typically have the opportunity to make your case during a follow-up interview, even if they aren't doing a full field background investigation.

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sometimes they use it to see how "bribe-able" you are. Meaning, if you have LOTS and LOTS and LOTS of debt and collectors pushing, crap like that, also, it can show addictions, like gambling, shopping, drugs. It's SOOO hard to tell. I know people who worked at Casinos. That's what they told me when they would get hired, they had to pass a Credit Check, and that's what they look for. Who is to say in your case, what it is they are looking for, I would also think that how OLD the debts are would be an issue. meaning if you in the last YEAR acquired 50,000 in credit card debt and turned right around and defaulted, that might be a red flag. I really think they are looking for extremes.

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I don't have huge amounts of debt...I have one medical collection for 200 bucks and 2-3 30day lates and 1 60 day late on some credit cards from a few years ago.

I have no student loans in default, but I have one student loan that reached 180 days because I didn't know my deferment was not still active. But I straightened it out and it's now consolidated along with my other loans and it is current and in good standing.

I also have another collection with Sprint/Calvary/NCO for $550 that I am about to DV now with a 1-2 punch to see if that works.

Other than that, everything else is kosher. I don't owe more than 750 in outstanding collections. And I can pay that tomorrow if i needed to. I just want to DV the medical and Sprint collection notices to see if I can get those removed.

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Don't waste you time, unless you clear or satisfy that $750.00 collection item.

Even then, your chance of being granted a clearence in this Post-9/11 society is not good.

Good luck...

:cool:

_____________________________________________________________

"Resistance is futile... The Borg will assimilate you...Resistance is futile..."

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Not true Radio guy..also depends on the type of clearence you are going for..also it can take up to 6-9 months to complete the process..which gives you sometime to clear your credit..they are mainly interested in the last 7yrs....I signed up with myfico.com and privacyguard so I could see when they pulled my credit as I have a couple of negative items left still..still working on them...also if you do not pass your investigative check that won't tell you the specific reason..for example,one guy was booted not for bad credit but his wife was irish and therefore a foreign national...they also look for patterns of financia irresponsibility,you will need to list any deliquent accts or bankcrupty..it will raise a flag it you have not listed it and it shows up on your CR

Don't waste you time, unless you clear or satisfy that $750.00 collection item.

Even then, your chance of being granted a clearence in this Post-9/11 society is not good.

Good luck...

:cool:

_____________________________________________________________

"Resistance is futile... The Borg will assimilate you...Resistance is futile..."

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Your clearance could easily take up to a year to go through depending of course on what it is and what it's for. My advice would be to be upfront about everything. I don't think your credit issues will be a problem unless you're going for a TS or the like. I believe they'd be more interested in your financial situation, rather than just strictly credit, i.e amount owed relative to income, tendency to live beyond your means, etc.

Good luck!

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Hi CreditDiva,

I hope you are right and my information is out of date or incorrect.

I do have some detailed knowledge on this subject. Specifically my information is pertinent to Top Secret/SCI (Secure Compartmentalized Information,) and TS/SCI/SSBI; but I am told the same rules apply to Top Secret and Secret clearences as well.

:wink:I'd tell you, but then I'd have to kill you... LOL

Best wishes and good luck.

Radio_Guy

____________________________________________________

"Resistance is futile... The Borg will assimilate you...Resistance is futile..."

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One of the projects I am working on is being classifed so all of us are having to go through this process,and when they turn up to interview you they will ask about any or all of discrepanies or stuff they flag..

Hi CreditDiva,

I hope you are right and my information is out of date or incorrect.

I do have some detailed knowledge on this subject. Specifically my information is pertinent to Top Secret/SCI (Secure Compartmentalized Information,) and TS/SCI/SSBI; but I am told the same rules apply to Top Secret and Secret clearences as well.

:wink:I'd tell you, but then I'd have to kill you... LOL

Best wishes and good luck.

Radio_Guy

____________________________________________________

"Resistance is futile... The Borg will assimilate you...Resistance is futile..."

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It will affect your security clearance. I use to work for the government (layoff). Depending on the Level of your clearance, it will affect it. You will be required to pay all your debts within 30 days of receiving the position.

Since you are going for this type of position you need to clear up any open accounts. Once they are paid. All they will do is ask you for a copy of the final payment from the company and why you were late on those debts.

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That site was great!

Just what I needed to determine if my situation applies to any of those approvals or denials.

I have another question.

I had a state tax lein put on my credit report about 2 years ago, since then, I was able to have it removed from my reports, but I am still in the process still fighting the debt as I am refiling my taxes to prove I was right.

So since the credit reports doesn't show the lein, can they still find out?

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