topic Re: Security Clearance in Rebuilding Your Credit

Security Clearance

kitm — Tue, 15 Jan 2013 07:09:28 GMT

My husband is applying for a job that will require a secret/top secret security clearance, but currently has 2 accounts in collections (totalling around $1300) and a few accounts showing delinquencies from 2008-2009.

Does anyone know if this will be a problem? Or have any advice on what to do to fix it quickly?

Re: Security Clearance

Botz1213 — Tue, 15 Jan 2013 07:27:12 GMT

I had mine before my credit problems but I have had to have it renewed and upgraded in the past year. They did ask a few questions but it was approved. Did he already have one? If not that might be the deal breaker. I was in the military where I got mine, when I got out I got a job at a defense contractor where I needed a higher clearance.

Re: Security Clearance

kitm — Tue, 15 Jan 2013 07:34:12 GMT

I believe he still has an active secret clearance from the military but it sounds like the new job is looking to renew or upgrade it. Will any of these things be a deal breaker?

Re: Security Clearance

Cageym — Tue, 15 Jan 2013 07:35:44 GMT

I currently have one where I work and just went through review. Don't lie or try to hide it, they will find out. Show that he is making an effort to take care of it. In most cases as long as he tells the truth he should be good to go. They will run a credit report, and have hime sign a doc giving them perms to see his tax returns from the IRS.

Re: Security Clearance

kitm — Tue, 15 Jan 2013 07:43:33 GMT

Hmm... Is it a problem that we have not made any effort to take care of the two in collections? Would it be too late if we start now? Also what are they looking for in the tax returns?

Re: Security Clearance

Botz1213 — Tue, 15 Jan 2013 07:51:58 GMT

I really dont know. Mine they spent a few minutes discussing it with me and that was all I really heard about it.

I know someone who did get denied for credit reasons from a TS / SCI clearance. I dont know the in depth details about it though.

Re: Security Clearance

Cageym — Tue, 15 Jan 2013 09:18:02 GMT

I don't think it would be to late, it shows you're trying to take care of it and aren't hiding anything. As far as the tax return goes I think all they are looking for is that you paid and don't owe them money.

Re: Security Clearance

RobertEG — Tue, 15 Jan 2013 09:54:01 GMT

I was the director of a national security organization within the federal government where all my employees were requried to have a security clearance, and was directly involved in the clearance process hundreds of times. I muself held a top secret clearance.

First and formost, I strongly echo the advice to always be complete and honest, as any attempt to conceal will almost always be a show-stopper.

Wanting to hide something makes you susceptible.

I have had employees with more serious background issues approved up to the secret level, with a lot of explanation, but background investigations at the TS level are tough. Clearances in my area did not relate to access to financial information.

Security clearances are approved based on both the background of the applicant and the information to which access is being granted. They are dependent upon job requirements. If the job involves feduciary responsibility, prior credit history could weigh heavily.. If not, it might not be significant..

I suggest speaking with the security officer at the agency for which the clearance is being requested, and see what types of criteria they specify.

Ii is possible that an unpaid debt could be one of those.

Re: Security Clearance

Cageym — Tue, 15 Jan 2013 10:08:33 GMT

@RobertEG - +1 on almost everything but I was told by the investigator that did my last one that they pull credit reports. And we don't deal with money here.

Re: Security Clearance

chasmith — Tue, 15 Jan 2013 12:32:42 GMT

I went through Secret and then Top Secret SSBI with prior financial problems showing. In each case I had to explain how I got in trouble, what I did about it, and was cleared.

Years later after I had stopped doing cleared work and my clearances had lapsed I filed Chapter 7 BK. My attorney told me he has represented folks with clearances and never had one pulled for BK. Filing BK is a responsible and legal step. We didn't discuss applicants for clearance.

I agree with other posters, being visibly candid and honest is the most important thing. Making arrangements to pay the $1300 in collections might help as well.

Re: Security Clearance

kitm — Tue, 15 Jan 2013 19:28:07 GMT

Thank you everyone for all your helpful advice.

Will it make a difference if we make arrangements to pay for deletion, do a pay less than full, or is it better just to pay it off?

Re: Security Clearance

guiness56 — Tue, 15 Jan 2013 19:43:13 GMT

Having been in the military for 25 years and holding a TS SSI, I can tell you what is looked at by the investigators for a military clearance. It doesn't matter that money is not handled. They look at if you are trustworthy or not, whether or not you would be a security risk due to the amount of debt owed. The more you owe, the more likely you are to take a bribe. (Not my words, theirs).

They do look at unpaid debt and how long it has gone unpaid. Why it is unpaid.

Any type of arrangements you make, whether they benefit you, as far as your score is concerned, will be a plus for the investigators. Just have proof you have and are keeping the arrangements.

As stated, don't lie and try to cover anything up. That will look very bad. Have a current copy of your CR with notations on it showing what has been done to rectify any negative information.

A lot also depends on the investigator. There are the good ones and the bad ones. The bad ones can make your life hell.

Re: Security Clearance

jadeite788 — Tue, 15 Jan 2013 20:53:55 GMT

im going to tell you straight up I know someone that went through sercurity clearance, and yeah the collections were an issue. They check everything, they go back as far as your daycare you went to as a kid. I kid you not. But then again that was his issue.

Re: Security Clearance

Cageym — Wed, 16 Jan 2013 01:30:20 GMT

@guiness56 You hit it on the nose. After 22 years in the military and most of the last 10 as a contractor that's how I see it. I always take in paperwork explaining ANY questions they might have. As soon as they bring something up I start showing them. It's one of the reasons I got involved so deeply in my CR in the first place, there was a baddie on my report that shouldn't have been there at all, a mistake on their part.

Re: Security Clearance

guiness56 — Wed, 16 Jan 2013 01:41:09 GMT

Cageym wrote:
@guiness56 You hit it on the nose. After 22 years in the military and most of the last 10 as a contractor that's how I see it. I always take in paperwork explaining ANY questions they might have. As soon as they bring something up I start showing them. It's one of the reasons I got involved so deeply in my CR in the first place, there was a baddie on my report that shouldn't have been there at all, a mistake on their part.

Yep. I got involved due to a vehicle I co-signed on being repoed and them coming to base to look for it. They involved the security police, which was a no, no. It breached the peace. At any rate, I got my clearance pulled by my unit until I proved I was trustworthy.

That led me to this forum and my learning a lot. After 9 months, I was able to return to my workcenter.