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Can debt stop you from getting a 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.
What disqualifies someone from a security clearance?
Those include criminal convictions that lead to a prison sentence of a year or longer, receiving a dishonorable discharge, “criminal incompetence,” and drug addiction.
Can my spouse credit affect my security clearance?
Your spouse being behind on debt payments does not have to kill your chances of obtaining a security clearance. If none of the accounts in your own name show a poor credit history or delinquency, then your spouse’s poor credit will not likely affect your security clearance application.
Why would a security clearance be denied?
In some cases, a security clearance investigation may be stopped and the application returned. This is due to problems with the application itself, rather than the applicant’s background. This means that procedural rules were not followed or not followed properly and the application must be re-accomplished.
What is considered excessive debt?
When you struggle to make monthly payments, you’re likely hitting your debt capacity. How much debt is a lot? The Consumer Financial Protection Bureau recommends you keep your debt-to-income ratio below 43\%. Statistically speaking, people with debts exceeding 43 percent often have trouble making their monthly payments.
What is acceptable credit card debt?
But ideally you should never spend more than 10\% of your take-home pay towards credit card debt. So, for example, if you take home $2,500 a month, you should never pay more than $250 a month towards your credit card bills.
How does debt affect my security clearance?
Though unexpected significant life and market changes can affect your financial situations, it does not always impact your security clearance. In many cases those who were in sudden significant debt due to no fault of their own, but lived within their means, attempted to pay the debt, and sought debt counseling were granted clearances.
Can You Lose Your security clearance with bad credit?
What’s more, new security clearance credit check rules make it more imperative than ever that military personnel and their families maintain financial stability. Otherwise, challenges with debt and credit could result in certain Service Members losing their security clearance. Can you get a security clearance with bad credit?
Will bankruptcy affect my security clearance?
Bankruptcy within the past three to five years with evidence of current credit problems. Fret not. With a plan in place, your debt doesn’t have to be a noose around your security clearance’s throat. Here are some general things you can do to show good faith and that you are taking your debt seriously:
Why was the applicant denied a security clearance?
The applicant was denied a security clearance because of his bad decision to prioritize other payments above his obligation to the taxes he owed. The applicant had almost a million dollars in delinquent debts that he attributed to the housing market crash.