Why Your Debt and Bad Credit will affect your Chances of Obtaining a Military Security Clearance?...and What you Can Do About it

Do you want to protect and serve? And get paid for it? But what about your finances? Do you have a lot of debt? Bills to pay off? If so, then how will that affect your chances of obtaining a security clearance for working for the Army, Navy, Marine Corps, or Air Force? We'll dive into this together.

What are the military's position on debt and bad credit?

First of all, the military doesn't want people who are irresponsible, who are frivolous with their money, or who make bad decisions because your financial position says a lot about you.  The National Security Adjudicative Guidelines layout a total of 13 criteria used to determine whether someone can receive a security clearance. One of those guidelines is called "financial considerations," which includes "failure to live within one's means." This is probably the most pertinent guideline for someone who has debt or bad credit because it's where these things are taken into account.

If you are looking for a job in the military, your credit score will not be considered during the initial application process. Once you get the position, however, you may need to undergo a security clearance check. If this happens, your credit score will be one of several factors considered as part of your background check.

In the past, bad credit or a high debt-to-income ratio could be a serious obstacle to obtaining a security clearance. However, the US government has changed its stance on this issue and now has a much more forgiving attitude toward people with money problems.

In fact, in the last few years, the military and DoD have recognized that financial problems can be caused by outside factors – such as job loss or divorce – and are willing to look at the circumstances behind your debt and credit issues when making their clearance decision.

Back In 2016, the Defense Department identified as many as 30% of service members who were security risks because of financial problems. It is also good news for those hoping to get into the military; being rejected for clearance because of financial issues has been a barrier to getting jobs in the armed services.

Even though the military's current stance on debt and bad credit is more flexible than it used to be, it doesn't mean there aren't some guidelines to follow if you want your application for security clearance to be approved without delay. Before getting a security clearance, you will need to explain what happened and why they shouldn't worry that it will affect your performance on the job. A good explanation might be that you went through a period of unemployment or had high medical bills following a serious illness. Being in debt is not illegal but the government may view your debt as a sign that you could be vulnerable to coercion or manipulation. This is especially true if you have bad credit, large amounts of debt, and an unstable financial situation.

How to improve your chances of obtaining a military security clearance?

If you do want to try and get into the military but have bad credit, here are a few things that you can do to help improve your chances:

• Fix any errors on your credit report.

Your credit report is a detailed record of your financial transactions. It contains information on current and previous loans, payments, payment history, and credit inquiries. The report also includes any judgments or liens filed against you, any bankruptcies you may have filed, and any accounts sent to collections. When determining whether or not you qualify for a security clearance, the United States Department of Defense (DoD) will review your credit report.

If you intend to join the military as an officer or an enlisted member, or if you want to obtain a security clearance for a military job, you should review your credit report before proceeding.

• Gather documentation for all financial hardships and mitigation attempts.

Get your documents ready. These include: Credit reports, statements from creditors, proof of payment plans with creditors- The military wants to see that debt was not only paid but also paid on time, letters of explanation, and proof of hardship (for example, medical bills or divorce paperwork). If it was out of your control (such as illness or injury), make sure you have documentation showing that as well.

Provide the investigating officer with a letter stating what happened, why it happened, and what steps you have taken since then to become financially responsible. Always be honest in your letter, because anything untruthful will be found during the investigation process.

• Focus on repairing your bad credit:

You will need to focus on credit repair if you want to get a security clearance into the military with bad credit. In general, you can join the military if your credit score is at least 600. If your score is less than 600, contact a local recruiter who can assist you in contacting the Department of Defense (DoD). Once you've joined the military, you'll want to work on repairing your credit. The Department of Defense, as well as many other government services, provides a variety of options for repairing your credit while serving.

• Make all of your payments on time

This is one of the most important steps you can take to improve your credit score. Paying bills late not only hurt your credit score but also creates other problems like late fees and penalties.

Summary

No Credit Score is Too Low!

While the U.S. military doesn't require applicants to have good credit — no minimum score is published — it still looks at your credit history when you apply for admission to any branch. The military may reject enlistment if you're unable to pay bills on time and meet other financial obligations. Military recruiters use your credit score as an indicator that you can be trusted with sensitive information and materials. The Department of Defense will also consider your payment history and other factors when determining whether to admit recruits. A high debt-to-income ratio and multiple derogatory marks on your credit report can result in rejection for security clearance into the armed forces. If you need help to get a security clearance but have bad credit and a ton of debt, comment below!