Bad Credit for a Government Security Clearance?

[bridgetkaryn]

Hi,

I need some advice and I am not sure if this is the area to do it... I am starting the process of getting a security clearance from the government, and credit will be my only issue.

Here are my Baddies-

 I had two charge off's back in 6/2005 and 1/2006- CapitalOne for both. I have since settled and closed both accounts.

 I also had a 4 other collections (all about $100) that are ALL PAID, and I have successfully gotten a few removed (most from 2/3 bureau's)  and working on getting the rest removed.

I had one utility account have multiple 120 day late accounts. Everything eventually got paid. I have spoken to the company to attempt to get these removed. I wrote a GW letter to them and am keeping my fingers crossed.

The goodie-

I haven't had any late's in about 1.5 years on my current accounts and I owe $0.00 on all of my credit card accounts

I know each employer is different, but how bad do you think this is? Has anyone else here who have had credit problems successfully passed a security clearance?

Thanks!

[demo18c]

Investigators look at your debt in order to factor in the risk. If you owe and have lates on say a 160k mortagage and have 25k in credit card debt then you are more likely to "turn" if money was offered from a foreign agent

[Anonymous]

When I applied for a job at government building they pulled my TU report and I forgot to report 1 CA so they sent me a copy of the report w/ website link... (you know when you print a page from website they print address on bottom).. lol

Anyways what most important for them is that you report all your baddies.. including ones with 60 days or more (think it was 60 or maybe was it 90?)

Also depends on the level of security clearence you are applying for which will also require a more intensive background search.

Also... remember to keep your future transactions clean because clearance dont last forever and if I remember correct... different level last certain amount of time.

[bridgetkaryn]

Ya, I am obsessed with pull my credit report too... I totally get you... Though just a money saver, you can pull it daily for free at truecredit.com, you will get a FAKO score, but you get what your report looks like. I usually pull my 3 FICO's once a month just to save $$... :-)

Thankfully everything I have now is paid down to zero, and some of my credit issue involve being too trusting of others and allowing my roommate the responsibility of paying bills that were in my name. OH JOY!

I am keeping my fingers crossed right now... and hopefully everythign will work out in my favor!

Thanks!

Bridget

[Anonymous]

• Key thing is to be 100% accurate on SF-86. 
• If interviewed by an investigator do no dismiss the debts or try to blame 3rd party or creditors.  Explain situation but take responsibility.
• If the debts are limited to a certain time frame explain that.  Continual money issues over long period of time looks far worse than a one time issue (even if one time issue is BK or involves multiple accounts).  Long period of insolvency indicates a personal or value trait that may make the candidate suspectible to foriegn influence.
• It is good that you paid all your outstanding collections.  While it doesn't improve your score the govt actual cares about this.  Unpaid collections show lack of responsibility.

[bridgetkaryn]

Thank you so much! I shoudl hear back about my preliminary clearence next week, then I will know exactly where I stand with them... I have already started filling out my SF-86 and am listing everythiug as it does on all 3 of my CR's...  I should find out 100% about my clearence 4-6 weeks after that! :-)

This makes me feel a bit better, and I am in an entirely different financial situation than I was when these "baddies" happened... And I learned the lesson that if you ignore them they will not go away! lol

[Anonymous]

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CreditMizer wrote:

• Key thing is to be 100% accurate on SF-86. 
• If interviewed by an investigator do no dismiss the debts or try to blame 3rd party or creditors.  Explain situation but take responsibility.
• If the debts are limited to a certain time frame explain that.  Continual money issues over long period of time looks far worse than a one time issue (even if one time issue is BK or involves multiple accounts).  Long period of insolvency indicates a personal or value trait that may make the candidate suspectible to foriegn influence.
• It is good that you paid all your outstanding collections.  While it doesn't improve your score the govt actual cares about this.  Unpaid collections show lack of responsibility.

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Nice summary!

[bridgetkaryn]

Just thought I would throw an update out there... I passed the initial screening and am into the indepth phase which they don't do unless they think you will pass (CR pulled!)

HURRAY!!!!