Security Clearance and My Credit History

There are different levels of security clearances that allow people access to confidential government or military information. Getting a clearance is often a long process that includes a credit check. Because of varied circumstances, it's difficult to determine how people's credit histories affect their chances for receiving security clearances.

Effects

The Institute for Intergovernmental Research (IIR) is a nonprofit organization in the United States that focuses on law enforcement and homeland security issues. An IIR document on FBI security clearances notes that a poor credit history and other financial problems may not prevent someone from getting a security clearance if the financial issues aren't considered to be significant. Yet the document doesn't list issues that would lead to denying someone a security clearance. It does indicate that an applicant may be required to resolve credit issues before a clearance is approved.

Function

The Defense Security Service conducts security-clearance investigations for the U.S. Department of Defense. An article posted on The Washington Post website titled "Getting a Security Clearance" notes the agency views the investigation process as an assessment of a person's "loyalty, character, trustworthiness and reliability." Therefore, credit checks are part of the agency's security-clearance investigation to determine whether a person has handled financial obligations responsibly.

Theories

A CBS News report notes that a study released by Sheldon Cohen, a Virginia attorney who specializes in security cases, links an increase in the number of denied security clearances for government workers and contractors with the rise in home foreclosures. Cohen examined foreclosure cases from 2006 through 2010. According to the CBS News report, people who are seeking security clearances and facing foreclosure or other financial problems are considered vulnerable to accepting money in exchange for revealing national secrets.

Considerations

An Army Times article titled "Foreclosure May Affect More Than Your Credit Score" cites comments from unidentified U.S. military officials on foreclosures. One official acknowledges that foreclosures may affect security clearances for military personnel. However, the official says a "pattern of behavior" is considered when judging a person's financial situation and clearance. For example, officials would examine whether someone is making a sincere effort to repay debt rather than allowing debt problems to linger.

Process

The Army Times also indicates that U.S. military officials say security clearances are considered on a case-by-case basis. As a result, there are no set limits used for credit scores or debt-to-income ratios when determining whether to approve clearances. Service members also can dispute information in credit reports because credit checks may turn up inaccurate financial data.