Can Bad Credit Prevent You From Getting A Security Clearance?

How hard is it to get a security clearance?

Obtaining a security clearance is no easy task, and not everyone who applies will be granted access.

If this is the case, an applicant hasn’t been denied a clearance, but rather denied employment after already submitting a security clearance application..

Will bad credit disqualify me from the military?

Enlisting in the military for many people may seem like a way to make a fresh start. … A bad credit history can affect your plans to enlist and advance in the military. If you have unpaid loans which are significantly overdue and/or in collections, you can expect to be denied enlistment until you resolve the problem.

Why is debt settlement bad?

Is debt settlement bad for credit scores? Yes. Debt settlement will negatively affect your credit score for up to seven years. That’s because, to pressure your creditors to accept a settlement offer, you must stop paying your bills for a number of months.

Do you have to have good credit to get a security clearance?

So when it comes to obtaining your security clearance, there isn’t a clear “cut off” point or range for acceptable credit scores. However, the underlying reasons for your bad credit may or may not affect your security clearance eligibility, depending on what they are.

How long does a security clearance take?

In general, expect a CONFIDENTIAL or SECRET clearance to take between 1 and 3 months. A TOP SECRET will probably take between 4 and 8 months. However, some individuals have been waiting for the results of their TOP SECRET investigation for more than one year.

How long does it take to get secret clearance 2020?

The fastest majority of secret cases took a total of 89 days to complete in the third quarter of 2020, better than the 163-day average in 2019, according to DCSA data. Top secret clearances took an average of 135 days, well below the 305-day processing times from one year ago.

How much debt is bad for security clearance?

According to the Consumer Protection Financial Bureau: “Financial experts say that less than 37 percent debt-to-income ratio is healthy and anything over 43 percent is a sign that financial distress is inevitable, if not imminent.”

Will debt settlement affect my security clearance?

While it is generally conceded that excessive debt is a cause for denying security clearances, no branch of the military has a set amount of debt that will result in being denied. … That is considered an excessive amount of debt, but not a disqualifying amount unless the debt has been delinquent for some time.

How many security clearances are denied?

The Central Intelligence Agency (CIA) denied 8.5% of applicants and revoked clearances from 0.5% of holders. The Defense Intelligence Agency (DIA) had 0% denials and 0.5% revocations. The Federal Bureau of Investigation (FBI) had 0.1% denials and 2.0% revocations.

What disqualifies you from getting a security clearance?

Conditions that could raise a security concern and may be disqualifying include: A history of not meeting financial obligations; … Financial problems that are linked to gambling, drug abuse, alcoholism, or other issues of security concern.

Why would a security clearance be denied?

The Most Common Reasons for Being Denied Security Clearances Believe it or not, financial considerations are among the highest causes of having a security clearance application denied. Published reports note that in 2017, the Defense Office of Hearing and Appeals (DOHA) Board heard 2,054 clearance denial appeals.

Can you get a security clearance if you owe taxes?

Federal law doesn’t specifically bar someone with tax debt from being granted a security clearance, but guidelines on granting clearances advise caution. “An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds, ” the regulations state.

How far back does a secret clearance check?

The clearance process for Secret level access uses an investigation called the National Agency Check with Law and Credit that goes back five years, while the clearance process for Top Secret uses a Single Scope Background Investigation that goes back ten years.

Can bad credit stop you from getting a security clearance?

Credit checks for granting security clearance are nothing new. … Then they performed follow-up credit checks every 5-10 years, depending on the clearance level, according to the CFPB. So, even in the past, a bad credit score would potentially prevent you from receiving national security clearance.

What happens if you are denied a security clearance?

If you feel you have been unjustly denied security clearance, for any reason, you can appeal for a reversal of the decision. The federal government can take up to six months to approve your application for security clearance. … If not, the employee must move on to the formal appeal stage.