TO for DOD Job, Credit and Background Questions

Can anyone give insight into how the federal process goes and how my financial situation will work out?

Given TO with DOD, filled out OF306 (sent to security officer for some clarifications although I am not sure why). Non-sensitive/low risk position- assuming I will need to fill out SF85 but not sure yet. Will the DOD pull credit report even if it is SF85?

Credit score is low due to high credit card debt- $18,000 (although $3,000 is a credit card for dental work). No accounts are delinquent, all paid on time. My student loans are very high- over 1
$150,000 but again not delinquent. I have one account under $200 that was sent to collections but the company found it was a mistake on their part and I am taking care of that. No arrests or other issues.

I worry my high student loans and credit cards will be an issue, although with the new job I can probably pay of all the credit card debt or at least pay it down significantly in the first year. I have no idea what comes after the OF306 (except maybe then I get eQip?) and feel lost in the process.

Thank you!

Yes, your credit report will be part of this process. A credit score is not an issue, that is used by credit granters.

You will probably be interviewed and so make sure you have all the documentation about your collection account. It will show you are on top of it and trying to resolve the issue.

Student loans have been hard to gauge in terms of their impact with the onset of COVID and delays that have been granted. If you are following the delays that have been legally granted then you are probably going to be OK. Now about your “high credit” debt…that could be another issue but if you can explain it and what it entails then that may help. You still have a $15,000 debt that will need some explanation. Are you paying minimum payments, adding to the debt each month etc. All things to consider. In the world of security clearances, this is probably the most significant area of concern and one that renders the most denials. Good luck.

The only things you will have to explain are derogatory accounts within the coverage period. Accounts that have not been derogatory will not be discussed, even with a large balance. If you are paying as agreed you are good to go. This is coming from an investigator. I take a quick glance at my subjects credit and if they don’t have any derogatory accounts I don’t even print their credit report to bring to the interview.