Well, the day i've been dreading for the last 7 years has arrived. The defense contractor I work for has informed me they will starting the process to get a secret clearance. I’ll have some blemishes on my credit report that I will need to explain. My story is probably similar to many. Broke college kids with credit cards and so on, so I wont bore you with many details. The purpose of this post is the get some feedback. I’m stressing out over the possibility Ill get denied and would like some advice on what steps to take to give myself a better chance. I will outline below the marks on my CR and hopefully someone who has been through this can provide some feedback.
Drugs – 2002 Experimented with marijuana. The only time it was used.
Arrests – None. I have had to appear in court for driving with a suspended license. Took care of the license and case was dismissed. I believe the ticket said it was a criminal offense. May have been 2006.
Financials – Here I will summarize whats on my credit report. Its not great, I know. I started trying to improve the report back in 2011. Its getting there, but a long way to go.
- Judgment #1 - Settled as Agreed
- Judgment #2 – Last payment is May 31st, 2013.
- Judgment #3 – Balance remains just under 10k. Wages are being garnished. This one worries me the most. This was for a private student loan. When I consolidated my Federal student loans, I included this loan on my packet. I received the return packet stating the consolidation had gone through. I didn’t know private loans couldn’t be consolidated and that the packet only included my federal loans. I received a letter from the private loan holder after missing the first payment. I stupidly blew it off because I believed it was consolidated and might take a few weeks for the consolidation company to catch up with all the companies. Around this time I was deciding whether to look for a job where I went to school or move back home. I had changed addresses several times and didn’t receive any notices of judgment. My only notification was getting a paycheck with my wages garnished. This was obviously my mistake for not following up and assuming things would fix itself. Had I actually been aware of a possible garnishment I would have attempted to make a deal like I did with Judgments 1 and 2. Anyways, my wages are being garnished at 450/month, 10% INT and expect it to be paid off in a bit over 2yrs.
- Fingerhut – Chargeoff – Never heard of it but it was cheap so I paid it. I asked to verify debt and they said it was valid. Paid a collection agency. Balance is 0
- HSBC – Chargeoff – Paid a collection agency. Balance is 0
- Comcast – When I moved, my uncle asked to keep the cable in my name to save him the trouble. He fell behind and I was hit. I Paid the balance and shows as paid in full. 0 Balance
- Verizon – Same as above. Uncle asked to leave in his name. Last payment in May 2013.
- LOGIX – PAID in full. 0 balance
- Midland Funding – PAID 0 Balance
- Macys – Pays as agreed ON-TIME
- Credit Card #1 – Pays as agreed ON-TIME
- Credit Card #2 – Pays as Agreed ON-TIME
- Credit Card #3 – Pays as agrred ON –TIME
- Student Loans (Consolidated) – Pays as agreed ON-TIME
- T-Mobile – Not on credit report but always on-time.
In summary of my "essay" above…
3 Judgments. 1 Paid, 1 with final payment in May, 2013. 1 being paid through garnishment.
6 accounts in Charge-off or collection. 5 have 0 balance with last item to be paid off in May, 2013.
6 Accounts in good standing always paid on time.
Based on what I have provided, do I have a shot? What steps can I take better the odds? Any advice is greatly appreciated.
Starting Score: 548
