Rebuilding Your Credit

[kitm]

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?

[Botz1213]

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.

[kitm]

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?

[Cageym]

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.

[kitm]

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?

[Botz1213]

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. 

[Cageym]

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.

[RobertEG]

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.

[Cageym]

@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.

[chasmith]

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.