When applying for or maintaining a security clearance, one of the most problematic areas of your background is your financial history. While personal finances may seem private and unrelated to national security, the government views financial difficulties as a potential vulnerability. Poor financial judgment, excessive debt, or unresolved tax issues can create pressure that may increase the risk of coercion, exploitation, or poor decision-making.
IcemanF14 on ClearanceJobsBlog is an applicant worried about his own financial past before applying for a security clearance:
Went through a divorce in 17 and had like 6 things get delinquent and eventually to collections. Settled one like 3 years ago. Had a judgment on one and came to an agreement, which a payment plan was setup and taken care of, also 3 years ago. A couple of months ago everything else fell off the credit report. Remarried with joint and my own accounts. Score is above 700. Haven’t missed any payments on anything since 2018.
Have not started the sf86 yet.
The question asks if anything was turned over to collections in 7 years. No, because it was already there. Do I disclose more info than that’s asked and include things right outside of the 7 years especially if they were not paid off. Unemployed for a year now so that adds to it. What are my chances of passing the financial aspect of the background. Any input would be greatly appreciated.
Under Guideline F: Financial Considerations, adjudicators evaluate whether an individual’s financial circumstances may pose a risk. The concern is twofold: A history of poor financial decisions may reflect negatively on someone’s ability to handle classified material responsibly, and / or individuals under financial strain may be more susceptible to bribery, coercion, or illegal activity to resolve debts.
Common red flags include:
- Excessive Debt or Bankruptcy – Not disqualifying on its own, but repeated financial mismanagement is a concern.
- Delinquent Accounts – Unpaid debts suggest poor reliability, especially if you don’t have a plan to make payments.
- Unpaid Taxes – A serious red flag, as it shows a pattern of disregard for legal obligations.
- Gambling Problems – Especially if it leads to instability or unpaid debts.
- Undisclosed Financial Issues – Hiding problems is often worse than the issues themselves. Do not do this.
Financial challenges don’t automatically end clearance eligibility. Job loss, medical bills, or divorce may explain difficulties. Showing good-faith efforts like payment plans, financial counseling, and honest disclosure, can help ease concerns that adjudicators may have. So, best practice is to take the question literally and list out your collections. And moving forward, stay current on bills and taxes, monitor credit regularly, avoid unnecessary debt, address financial issues early, and always be transparent during the clearance process.
Clearance decisions aren’t about being perfect with money, they’re about demonstrating responsibility, honesty, and proactive efforts to manage financial challenges.
Much about the clearance process resembles the Pirate’s Code: “more what you’d call guidelines than actual rules.” For this reason, we maintain ClearanceJobsBlog.com – a forum where clearance seekers can ask the cleared community for advice on their specific security concerns. Ask CJ explores questions posed on the ClearanceJobs Blog forum, emails received, and comments from this site. This article is intended as general information only and should not be construed as legal advice. Consult an attorney regarding your specific situation.Â
