Hello, I’m new to this format so Please forgive me if this has already been answered. I Just got a conditional offer for a job but I have to get a TS clearance. I had some issues with my credit (mainly paying student loans, credit card, and medical bills) for me not paying on time. Long story short, in mid 2016 we did the Dave Ramsey program, put together a budget, called all of our debtors, and have since figured everything out. We haven’t missed a payment since mid 2016 and currently have nothing in collections. How bad will I be dinged or even better, is it still possible to get a TS with these marks in my history? Thanks in advance for any help.
Very possible to get clearance. Be sure to list all required debts asked by the SF86.
Thank you for the reply. That puts my mind at ease a little
Tell the truth on the sf86 and tell the truth in person during your BI.
Absolutely. Keep in mind a recovered FICO is nice, but they are more interested in the payment history. Meaning, a high FICO doesn’t mean you always used credit in a positive manner. If you had a job loss, loss of income, underemployment etc, it is explainable. If you were young, dumb, carefree, and finally got mature about it…that too is explainable. You are in the best position if all debt is in a repayment plan, and the FICO recovered. My client is very touchy on credit. They are comfortable with a 650 FICO and all that it indicates…fair credit. Anyone can miss a bill or three along many years. But if the overall big picture indicates you pay everyone, all the time, on time at least since 2016…I would not see it as a negative. Now, if the FICO has yet to bounce back above a 650…I would look at the debt to credit ratio. If you can get that at least below 35% total usage, ideally 25% or less…your overall credit health looks much better. This is about demonstrating you follow the rules of society, are responsible, can be trusted with agreements you make to repay…and also protect classified material moving forward. It also removes a risk of selling classified material to get out of a desperate situation or just make a lot of money.
Thank you for the advice. It has helped ease my mind some. My FICO is above the 650. If I could turn back time, I obviously would have done certain things different (like pay my student loans when they were due ). we have worked pretty hard to get back on track and had this opportunity for a new job with a pay increase. I would hate to be disqualified because of some dumb decisions we made In The past.
The slow pay and no pay periods will show up. The potential saving grace comes from how it is explained. I’m familiar with the D Ramsey approach and admire the discipline and requirement to pay stuff off. It doesn’t hide from responsibility. So as you paid off more and more, the credit history shows the diligence, the score responds, and it demonstrates you live up to promises and responsibility. Maturity helps us see debt differently. So again as we age, if we pay closer attention and make sure it is all in a repayment plan, and we are making steady progress…it paints a picture, tells a story. It is the history that matters more than the current FICO, but a strong current FICO adds weight to the story that you are living a more responsible life. Whole person picture matters. Keep plugging and let us know.
@amberbunny thank you again. So I’ve completed my packet but I have one more question before I Turn it in. I may be paranoid but I want to make sure I don’t get disqualified because I missed something. My negatives that I found on my credit report were as followed:
Capital one cc turned off back in 2013 due to lack of payment. I was able to do a payment plan with the company and paid it off in 2015
A fed loan student loans that were VERY far behind but was able to call them and get things back on track and they’ve been on track since 2016
A hospital bill that was sent to collections in 2015 and was paid off in 2016.
I have checked all 3 (Experian, TransUnion, and Equifax) credit bureaus and this is the bad I have found over the last 7 years. My question is, should I check my wife’s credit as well to make sure that maybe there’s something on there that I missed?
All of this may be way more info than is needed but I just don’t want to look like I was trying to hide anything or being deceitful. Thanks again to everyone that answered on here for me. I REALLY appreciate all the info.