One of the more confusing aspects of the security clearance application process is how seemingly inconsistent it can seem. If you find someone offering a universal formula for who will and won’t get a clearance based on numbers alone, you’ll find a dozen cases within the Defense Office of Hearings and Appeals (DOHA) published decisions that appear to contradict. That’s not a case of inconsistency, but the reality of the whole person being applied. Two recently published DOHA cases display that reality around the financial considerations adjudicative guideline.
True or False: If You have 90k in Consumer Debt, You Won’t be able to get a clearance
The first case involves issues that at face value seem like they would be a clear cause of clearance denial under the financial considerations adjudicative guideline. The applicant was 32, with $91,000 in debt, largely tied to credit cards and consumer spending that was too high. The applicant attributed some of the debt to being laid off, but the numbers appear pretty staggering. The applicant didn’t have a hard luck story around medical issues, and he didn’t try to blame outside factors for his debt. Despite those issues, the applicant was granted clearance eligibility – what gives? The applicant likely had two factors in his favor:
- He accepted full responsibility for all debts and noted he showed poor judgment in incurring the expenses.
- He had taken steps and been making payments on his accounts for at least one year prior to applying for a clearance.
We frequently say cause of debt matters. But probably even more so than that, the steps taken to address debt prior to applying matters. If you submit an SF-86 without a payment plan in place to address your debt, the government does not have a lot of trust that your debt is truly something you are concerned about.
Less Debt; Less Responsibility
A second case provided the financial picture of a 63-year-old defense contractor with $24,000 in unpaid debt. The debts included an unpaid auto loan, several student loans, and rental debt and other unpaid loans. The loans included several the applicant claimed to be unaware of, and at least one he attributed to his daughter. the applicant argued the government shutdown was to blame for some bills, but also noted he and his wife sometimes forgot to pay their bills.
This is a very clear example of how the security clearance process favors those who are proactive with any issues, as well as personal responsibility. One of the bigger red flags for the 63-year-old applicant was the issue of being unaware of or refusing to take responsibility for certain debts. This calls into question issues of reliability and trustworthiness. For debts the applicant was aware of, he hadn’t taken steps to address the debt prior to applying for a security clearance. Even though the actual amount of the debt was smaller than other applicants who may have been granted eligibility, the lack of awareness and blame shifting are red flags in the security clearance eligibility process.
Prior to submitting your SF-86, it is always a good idea to request a copy of your credit report to see if there are any issues that come up in your credit report that you’re not aware of. Then, make sure to address those issues before you submit your SF-86. It truly isn’t the amount of debt that’s a factor. And sometimes even a foolish cause behind the debt can be mitigated – if you can show that you’re taking steps to address it.
