Credit Question

[joseph61189]

I have searched this forum and read the older entries in regards to this question and couldn't really come up with an answer. I would ask my recruiter but he is rather busy (up coming air show, camping trip with poolee's, etc) and usually have to make a special request to meet with him due to my working hours, plus I am over weight (by 20lbs) and therefore do not currently qualify.

My question is I have recently been made aware about my current credit situation. Everyone has their story, but the bottom line is I now have bad credit in the way of actual collection notices, unpaid accounts and student loans. I do work, and am taking full responsibility over what happened. I do realize that bad credit isnt a total DQ, just limits your MOS selection list and clearances, but what about an actual collection notice, even if the balance was paid?

Thank you in advance for anyone who has the time and or knowledge to provide an answer for me.

[GyC]

I have searched this forum and read the older entries in regards to this question and couldn't really come up with an answer. I would ask my recruiter but he is rather busy (up coming air show, camping trip with poolee's, etc) and usually have to make a special request to meet with him due to my working hours, plus I am over weight (by 20lbs) and therefore do not currently qualify.

My question is I have recently been made aware about my current credit situation. Everyone has their story, but the bottom line is I now have bad credit in the way of actual collection notices, unpaid accounts and student loans. I do work, and am taking full responsibility over what happened. I do realize that bad credit isnt a total DQ, just limits your MOS selection list and clearances, but what about an actual collection notice, even if the balance was paid?

Thank you in advance for anyone who has the time and or knowledge to provide an answer for me.


You will be asked to list your unpaid debts/delinquincies on the SF-86 background investigation.. Just be honest, and it should not effect you that bad... Matter of fact, I haven't seen it affect anyone as far as job placement... I think you have to have some major debt/delinquincies for denial of a secutrity clearance... Good luck with your situation! S/F

[OB MSG]

I concur with GyC. If you have delinquencies, then work your tail off to get things back to square. Drop any unnecessary expenditures, at least for a couple of months, Heck, you could use that time to PT and drop that 20 lbs, win/win there.

Then when you have to fill out any paperwork for what you want, just divulge everything you need to and be thorough if they ask for explanations.

You may catch some flack and grumble from some people about it, but no bodies perfect. Just pick yourself up, dust off and keep marching, you'll get there!

[Kegler300]

Here is the Adjudicative Guideline for Financial Considerations when it comes to obtaining a security clearance:


Guideline F:
Financial Considerations

18. The Concern. Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. Compulsive gambling is a concern as it may lead to financial crimes including espionage. Affluence that cannot be explained by known sources of income is also a security concern. It may indicate proceeds from financially profitable criminal acts.

19. Conditions that could raise a security concern and may be disqualifying include:


(a) inability or unwillingness to satisfy debts;


(b) indebtedness caused by frivolous or irresponsible spending and the absence of any evidence of willingness or intent to pay the debt or establish a realistic plan to pay the debt.


(c) a history of not meeting financial obligations;

(d) deceptive or illegal financial practices such as embezzlement, employee theft, check fraud, income tax evasion, expense account fraud, filing deceptive loan statements, and other intentional financial breaches of trust;


(e) consistent spending beyond one's means, which may be indicated by excessive indebtedness, significant negative cash flow, high debt-to-income ratio, and/or other financial analysis;


(f) financial problems that are linked to drug abuse, alcoholism, gambling problems, or other issues of security concern.


(g) failure to file annual Federal, state, or local income tax returns as required or the fraudulent filing of the same;


(h) unexplained affluence, as shown by a lifestyle or standard of living, increase in net worth, or money transfers that cannot be explained by subject's known legal sources of income;


(i) compulsive or addictive gambling as indicated by an unsuccessful attempt to stop gambling, "chasing losses" (i.e. increasing the bets or returning another day in an effort to get even), concealment of gambling losses, borrowing money to fund gambling or pay gambling debts, family conflict or other problems caused by gambling.


20. Conditions that could mitigate security concerns include:

(a) the behavior happened so long ago, was so infrequent, or occurred under such circumstances that it is unlikely to recur and does not cast doubt on the individual's current reliability, trustworthiness, or good judgment;

(b) the conditions that resulted in the financial problem were largely beyond the person's control (e.g. loss of employment, a business downturn, unexpected medical emergency, or a death, divorce or separation), and the individual acted responsibly under the circumstances;


(c) the person has received or is receiving counseling for the problem and/or there are clear indications that the problem is being resolved or is under control;


(d) the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts;


(e) the individual has a reasonable basis to dispute the legitimacy of the past-due debt which is the cause of the problem and provides documented proof to substantiate the basis of the dispute or provides evidence of actions to resolve the issue;


(f) the affluence resulted from a legal source of income.

[Lupo22]

you wont get security clearance but you can still enlist. I have had collection notices and still have dilinquent accounts that i've begun paying off and I am shipping to SOI on august 24th. So no, it won't be a problem as long as you don't have any security clearance requirements. And even then, I got approved for an MP slot :)

[joseph61189]

Thank all of you for the information/comments you provided for me. It was most certainly appreciated!

[Kegler300]

If you were approved for a 5811 MP MOS, then you must obtain eligibility for a secret security clearance. It is an MOS requirement. I suggest you either discharge your debts or get current on all...

[Lupo22]

Ay Master Gunnery Sgt. I'm in the process of doing so. I was entreprenuerial when I was younger and it cost me a lot when the business went under from some bogus lawsuit. Long story. But I'm...

[joseph61189]

If I may ask, MGySgt, and for anyone else reading, I am looking into going into the 08xx field. However, I noticed that 4 out of the 7 positions require a Secrete Clearance. I would be thrilled to...

[marine95]

joseph61189,

When I joined back in 95, my paperwork said I was eligible for a secret clearance. When I went to my first duty station in Yuma, Az they allowed me to work with classified material in which I needed an active clearance. I had past due bills, a huge student loan out there and a past DWI. I had to sit down with Naval Investigative Service and explain all about it. After providing some paperwork for it, they granted me my clearance and I had no problems since.

[joseph61189]

joseph61189,

When I joined back in 95, my paperwork said I was eligible for a secret clearance. When I went to my first duty station in Yuma, Az they allowed me to work with classified material in which I needed an active clearance. I had past due bills, a huge student loan out there and a past DWI. I had to sit down with Naval Investigative Service and explain all about it. After providing some paperwork for it, they granted me my clearance and I had no problems since.

Thank you for the reply Sgt.