86FC HELP! Secret Clearance Contractor to Govt

Good Afternoon! I am kind of in a situation that I am not sure what to do. I currently have a secret clearance with my contracting firm. I was presented with an opportunity to switch to definite dream job with DOD. My clearance transfers over with the use of the SF86C. However, upon reviewing my information I have several changes that are not good and mainly financial.

  1. Significant credit card debt
  2. I had a wage garnishment for property taxes
  3. i have been late on a few bills.

However, none of these are listed on my credit report. I plan on fully disclosing all of this on the SF86C. But after seeing all of this written out i am not sure if i should go through the process for the govt agency if they are just going to revoke my clearance. Most of the issues are due to lack of understanding on my part for health insurance etc and understanding the laws about registered vehicles in my state. HELP!! i have no idea who to ask about this.


How did you review this information? You say this is not on your credit report.

my credit card debt is on my credit report. but the other things i just kept track of and looked to see if it was reported on the credit report and they were not.

Your doing better than most. Put down what is on the report.


TC :boxing_glove:

Two questions: 1) did you report these to your FSO and did you document the report? I think these are reportable, especially wage garnishment. 2) Are you addressing these debts and are they current?

No. I did not report. I am fairly new to this govt/clearance environment. I spoke with HR about it and they said no issues. Everything that is past due is paid and and credit card debt is current. Paid on time. Maybe one missed payment but other than that credit cards, car note and student loans are current.

If it is not on your credit report, you do not need to list it on the SF86. Just bring copies of your most current report to the interview and go over each item with the BI.

I contacted the FSO and she said the SF86C was not a reinvestigation it’s just updated and changes. So I’m just confused as to what needs to be done. I don’t want to omit anything even if it’s not on my report. I would rather be honest than caught in a lie.

The BI if they decide to run a fresh credit grab, uses a system very different from the credit bureaus. They can see things all three missed, I’ve seen it several times. As long as you are now caught up and paying on time it is mostly mitigated. That can happen to anyone. But bigger picture, if they see repeated areas of falling behind that can tell a different story. I had missed bills recently. Somehow the gas company switched me to electronic billing and it went to my ex-wife’s email. I had it on autopay. When I finally got a mailed notice, I fixed it. It happens. I agree with merlin above in bringing a very recent copy of the credit report. If you cannot see it…I don’t see how anyone can rightfully say you should be aware of it.

How can we cover every item that has not been reported on our credit reports? I appreciate your candor, however this is not feasible. When my clients come to me they ask similar questions. Then just put what you think may come up, and if it does not so be it.

Well I have no plan on omitting anything. I am going to report everything even if it isn’t seen on the credit report. I just don’t know if the SF86C is like a reinvestigation or if I will be okay. The lady said it was just to make sure they knew of any updates/changes for their records. I just want to know what this all entails so I can make the best decision for me either back out and keep my present job or report to evrything and go to a job where I’m not sure if I will retain a clearance.

Are you an investigator? As mentioned I am fairly new to the clearance process. I just want to make sure I am able to work. I don’t know what the SF86C does and processing time? I am due to start work in May, so I guess I would find out before then if they still plan to transfer my clearance over.

I thought I was clear Merlin. Perhaps I was not. You and I differ on financial interpretations. I speak directly to my experience with this client. You no doubt speak to your experience with your client. I concur that if you cannot see a debt on the three main financial reporting agencies, and you have a strong credit score…I would not be too concerned over all. However, I said it before, I will say it again: the government uses a better, deeper view and sees debts missed by the three agencies, and I have my employees called to task to explain the debt, why it is in collection, or went to collection, why it was not addressed, etc. I agree if one cannot see it, they cannot act on it. Doesn’t stop the government from seeing it and asking questions when determining if you are worthy of trust in a TS SCI full poly environment. You either answer the questions sufficiently with enough mitigation…or you do not. Dub, I am not an investigator, just working Industrial clearances for 30 years, 9 with current client. If you are in JPASS, normally any agency can and will cross over a clearance if in scope. If it is long in the tooth…at times they want a fresh SF86 to review. If significant credit problems are present now…it may be considered unadjudicated info. That requires a Re investigation and full adjudication. And at that point you may or may not get the clearance and can lose the current one.

Regarding high debt and late bill payments…

The debt isn’t an issue if the account(s) is/are in current standing. What matters is you’re keeping up with payments. You need to report accounts that have been turned over to collections, gone 120+ days delinquent, charged off, canceled/suspended, etc. The criteria of what to report is in section 26 of the SF86 form. If you fall into that category, you can mitigate by showing a recent, steady payment history, payment agreement (with proof of payments) and/or full pay off, along with a solid explanation as to the reasons why it went that delinquent.

The property tax wage garnishment is also something you need to report, and hopefully you have either paid the balance due and have a good explanation for why that happened too.

You should have your original sf86 and the sf86c is just to update any changes between the two from then and now.


TC :boxing_glove:

My credit score is not as good as it used to be. I have only had my clearance for a year. Would you suggest I pass and keep the job I have now, get my credit in order and reapply for govt positions at a later date?

Can you define the delta? I advise my employees (430 plus) to always strive to remain above 650. Statistics show down to a 650 with no other issues 97% clear. Between 650 and 630 37 odd% do not clear. Odds still in your favor, but a significant chunk do not make it. Under a 630 FICO…now the odds go against you. Only about 33% clear (ish). Below 600 it plummets, but others, as Merlin speaks to often sees folks clearing well below 600. My client will not clear you if significantly below 600. I have a few employees required to demonstrate quarterly they are on top of their financial situation, making payments, etc. If you looked and saw you were in the low 500’s, I would not make a move currently. If you were 640 plus…I would likely risk it.

I am at a 613 at the current moment.

After talking with you guys! I think it’s best for me to keep the job I have and clean up my debt and get back on track before applying for anymore govt positions.

This is a wise decision.