Credit History

mrmet86

New Member
I was just reading a thread and found out that the FAA pulls your credit as part of your background check. Has anyone heard of someone not getting hired by the FAA for poor credit history?
 

Shyu

Well-Known Member
Having a bad debts and with late payments will give you bad credit of course, and if the background check flags this, it could be a problem, unless you can prove you are improving on your credit and debts.

FAA doesn't want to hire people who are suceptable to easy money. Getting paid for information ect ect.
 

mrmet86

New Member
Having a bad debts and with late payments will give you bad credit of course, and if the background check flags this, it could be a problem, unless you can prove you are improving on your credit and debts.

FAA doesn't want to hire people who are suceptable to easy money. Getting paid for information ect ect.

It nothing like that, I was laid off of my 6 figure income and was unemployed for a 6 months while i went back to school. Now I make a third of what i used to make. I was actually about to file a bankruptcy but i dont know if i should wait or not.
 

Barty

Well-Known Member
It nothing like that, I was laid off of my 6 figure income and was unemployed for a 6 months while i went back to school. Now I make a third of what i used to make. I was actually about to file a bankruptcy but i dont know if i should wait or not.
I would avoid filing the bankruptcy at all costs. A lifestyle change may be in order to keep that from happening though.
 

Craptastic

New Member
It nothing like that, I was laid off of my 6 figure income and was unemployed for a 6 months while i went back to school. Now I make a third of what i used to make. I was actually about to file a bankruptcy but i dont know if i should wait or not.
I had a friend who filed bankruptcy in March. He had a ton of Medical bills and college debt he couldn't get from underneath after trying to pay it off for years. Long story short he filed is getting $100K plus worth of debt written off and getting a clean slate to restart. He had no problems finding work afterward, got a auto loan and even a credit card to build his credit. I was surprised because of all the negative things I always hear about bankruptcy but he proved me wrong. It didn't get rid of his student loans though, guess government debt you can't write off. But the "upside" creditors look at is if you have filed for bankruptcy once you can't do it for 10 years so they know you'll pay up.

I don't know if it will affect getting a job with the FAA but they "technically" aren't suppose to discriminate against you if you have filed bankruptcy or have credit challenges. Best thing to do is talk with some one that has filed a bankruptcy and has a security clearance or with the person who handles your clearance. Bankruptcy or bad credit doesn't mean your a bad person so I think they will use more factors to determine a clearance for you. Hope your situation works out for the best.
 

Shyu

Well-Known Member
Guideline F:
Financial Considerations
18. The Concern. Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. Compulsive gambling is a concern as it may lead to financial crimes including espionage. Affluence that cannot be explained by known sources of income is also a security concern. It may indicate proceeds from financially profitable criminal acts.
19. Conditions that could raise a security concern and may be disqualifying include:

(a) inability or unwillingness to satisfy debts;

(b) indebtedness caused by frivolous or irresponsible spending and the absence of any evidence of willingness or intent to pay the debt or establish a realistic plan to pay the debt.

(c) a history of not meeting financial obligations;
(d) deceptive or illegal financial practices such as embezzlement, employee theft, check fraud, income tax evasion, expense account fraud, filing deceptive loan statements, and other intentional financial breaches of trust;

(e) consistent spending beyond one's means, which may be indicated by excessive indebtedness, significant negative cash flow, high debt-to-income ratio, and/or other financial analysis;

(f) financial problems that are linked to drug abuse, alcoholism, gambling problems, or other issues of security concern.

(g) failure to file annual Federal, state, or local income tax returns as required or the fraudulent filing of the same;

(h) unexplained affluence, as shown by a lifestyle or standard of living, increase in net worth, or money transfers that cannot be explained by subject's known legal sources of income;

(i) compulsive or addictive gambling as indicated by an unsuccessful attempt to stop gambling, "chasing losses" (i.e. increasing the bets or returning another day in an effort to get even), concealment of gambling losses, borrowing money to fund gambling or pay gambling debts, family conflict or other problems caused by gambling.

20. Conditions that could mitigate security concerns include:
(a) the behavior happened so long ago, was so infrequent, or occurred under such circumstances that it is unlikely to recur and does not cast doubt on the individual's current reliability, trustworthiness, or good judgment;
(b) the conditions that resulted in the financial problem were largely beyond the person's control (e.g. loss of employment, a business downturn, unexpected medical emergency, or a death, divorce or separation), and the individual acted responsibly under the circumstances;

(c) the person has received or is receiving counseling for the problem and/or there are clear indications that the problem is being resolved or is under control;

(d) the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts;

(e) the individual has a reasonable basis to dispute the legitimacy of the past-due debt which is the cause of the problem and provides documented proof to substantiate the basis of the dispute or provides evidence of actions to resolve the issue;

(f) the affluence resulted from a legal source of income.
 

kwells2520

New Member
I'm in kind of the same boat credit-wise. My husband had a great job at a mortgage bank and then had a seizure and was diagnosed with epilepsy. It was under control 6 months later and he got a new job with Indymac. Well, we all know how that ended (actually, he was laid off in January). In effect, he went probably seven months with no income, so we're in the process of filing bankcruptcy now. It's not great, and it can be really embarassing, but I think people understand that circumstances beyond your control happen to everyone eventually. I'm hoping that's the case, anyway...Good luck, Mrmet86 - hopefully we'll both come out of this OK!
 

shaba169

New Member
How about my situation. I have about 10 grand in credit card debt. I have never had a late payment. I normally make 2-3 times the minimum payment on all my accounts every month, and have never had any negative marks on my credit history. The percent of my debt makes up about 30-40% of my available credit which is a little high, but not awful. Also I have been working on paying it off (not charging anything) its just taking a long time. My question is would someone with a high balance, but no other credit problems fall into this area:

(e) consistent spending beyond one's means, which may be indicated by excessive indebtedness, significant negative cash flow, high debt-to-income ratio, and/or other financial analysis;

What does everyone think?
 

kwells2520

New Member
How about my situation. I have about 10 grand in credit card debt. I have never had a late payment. I normally make 2-3 times the minimum payment on all my accounts every month, and have never had any negative marks on my credit history. The percent of my debt makes up about 30-40% of my available credit which is a little high, but not awful. Also I have been working on paying it off (not charging anything) its just taking a long time. My question is would someone with a high balance, but no other credit problems fall into this area:

(e) consistent spending beyond one's means, which may be indicated by excessive indebtedness, significant negative cash flow, high debt-to-income ratio, and/or other financial analysis;

What does everyone think?

That doesn't seem so bad to me (but, then, again, take a look at my situation - LOL). My opinion is that if they do have a problem with it, a valid reason for the credit card debt might help. You know, I was in school and had to pay for my living expenses...something like that. Just a thought. Maybe I'm just trying to be optimistic for all of us. :)
 

Rosstafari

Likes tacos
I don't know if it will affect getting a job with the FAA but they "technically" aren't suppose to discriminate against you if you have filed bankruptcy or have credit challenges.
Whoa. That's absolutely false. If you have very poor credit or have filed bankruptcy, that's a serious red flag -- and it can be a disqualifying factor. They're not just checking your credit for kicks and giggles. There is no law that says refusing to grant security clearance due to poor credit is illegal. It's not discrimination, it's checking into the character of someone who could have hundreds of lives in their hands.

Bankruptcy is a serious thing, and it's never a good option. If your friend told you he had "no problem" getting a job after declaring, either he didn't get a very good one or his company didn't bother to check into his background beforehand. It can cause some long-reaching problems and isn't just a simple "clean slate".

And if he says he had no problem getting a car loan and a new credit card... sigh... send that man some Dave Ramsey books.

Bankruptcy or bad credit doesn't mean your a bad person so I think they will use more factors to determine a clearance for you.
The first part is true... declaring bankruptcy doesn't make you a bad person.

But it does make you stand out as someone who has had enough trouble with debt that they couldn't deal with it, which to the FAA means that they may not be prepared for the responsibility of a controller.

The credit check is one part of many, but it's an important one. Wishing that it weren't so won't make it true.
 

Wyopoke79

New Member
Rosstafari

I would just like to say that you are in violation according to the same document. You list your location as The Republic of Texas, Austin. The Republic of Texas was a Sovereign Nation that existed from 1836 to 1846. The Republic no longer exists. It is now the U.S. state of Texas. So, I must assume that you are a member of the the group called The Republic of Texas.

This is a small group of individuals posing as an independence movement that claims that the annexation of Texas by the United States was illegal and that Texas remains an independent nation under occupation.

Therefore, You are in direct violation of the very document listed above in this thread.

Guideline A: Allegiance to the United States
3. The Concern. An individual must be of unquestioned allegiance to the United States. The willingness to safeguard classified information is in doubt if there is any reason to suspect an individual's allegiance to the United States.

4. Conditions that could raise a security concern and may be disqualifying include:

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States of America;
(b) association or sympathy with persons who are attempting to commit, or who are committing, any of the above acts;
(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional means, in an effort to:

(1) overthrow or influence the government of the United States or any state or local government;
(2) prevent Federal, state, or local government personnel from performing their official duties;
(3) gain retribution for perceived wrongs caused by the Federal, state, or local government;
(4) prevent others from exercising their rights under the Constitution or laws of the United States or of any state.

5. Conditions that could mitigate security concerns include:

(a) the individual was unaware of the unlawful aims of the individual or organization and severed ties upon learning of these;
(b) the individual's involvement was only with the lawful or humanitarian aspects of such an organization;
(c) involvement in the above activities occurred for only a short period of time and was attributable to curiosity or academic interest;
(d) the involvement or association with such activities occurred under such unusual circumstances, or so much times has elapsed, that it is unlikely to recur and does not cast doubt on the individual's current reliability, trustworthiness, or loyalty.





beware........the rules are out there for a reason....like it or not

Allegiance to the United States is apart of the background check. Wishing that it weren't so wont make it true.

Being that you are applying for a National Security Clearance.... I feel it is my duty as a U.S. citizen to report you to the proper authorities.


i kid :rawk::nana2::rawk::nana2:
 

Craptastic

New Member
Whoa. That's absolutely false. If you have very poor credit or have filed bankruptcy, that's a serious red flag -- and it can be a disqualifying factor. They're not just checking your credit for kicks and giggles. There is no law that says refusing to grant security clearance due to poor credit is illegal. It's not discrimination, it's checking into the character of someone who could have hundreds of lives in their hands.

Bankruptcy is a serious thing, and it's never a good option. If your friend told you he had "no problem" getting a job after declaring, either he didn't get a very good one or his company didn't bother to check into his background beforehand. It can cause some long-reaching problems and isn't just a simple "clean slate".

And if he says he had no problem getting a car loan and a new credit card... sigh... send that man some Dave Ramsey books.



The first part is true... declaring bankruptcy doesn't make you a bad person.

But it does make you stand out as someone who has had enough trouble with debt that they couldn't deal with it, which to the FAA means that they may not be prepared for the responsibility of a controller.

The credit check is one part of many, but it's an important one. Wishing that it weren't so won't make it true.
I see what your saying but stating that a few bad marks on your credit will make you get cut from the process is inaccurate information. None of us are HR or the people with OPM making decisions so we don't know for sure but I would think there are other determining factors. If you have a criminal record or shady past those things come into play too. And no bankruptcy isn't the greatest thing, it is some thing that stays with you for years. It should always be a last resort but your life is not over when you file for bankruptcy. Its put in place for people that truly need it. In my friends situation it was a huge help because it lifted a burden off him so he was able to move on with his life. And to answer your question yes he was able to secure a great job working with a rather large private sector defense company. Of course there is always more to the story but I said I would make a long story short.

MrMet you won't know how it will affect you until you actually get a TOL and they start a clearance on you. At that time you should probably talk to your POC or the person handling your clearance and explain your situation. I don't know exactly how all the clearance investigations go, mine was completely what seemed like instantly. When they contact you just be up front, they will find out any way.
 

Craptastic

New Member
And I am in no way pretending to be the expert on bankruptcy or security clearances only speaking from what I know. When I got my first clearance years ago it took almost a year to get and I have a clean background, never been arrested, didn't even have any sort of credit accounts at the time. Some people say that is unusual but my mothers clearance took just as long when she got one done. And my father has had a top secret military clearance for 26 years and he said it was a easy process for him. But I have friends that got their clearances easily and they have been arrested and all sorts of shady backgrounds. So it really just depends is what i'm trying to say, I could be wrong and they might not like you for some other reason, thats why you should get in contact with some one once you get a TOL. Don't stress yourself out about it now, do whats in your best interest and maybe even try one of those credit counseling things.
 

Rosstafari

Likes tacos
Allegiance to the United States is apart of the background check. Wishing that it weren't so wont make it true.

Being that you are applying for a National Security Clearance.... I feel it is my duty as a U.S. citizen to report you to the proper authorities.
Crap. Guess I gotta go scrape the "Secede" sticker off'n my pickup.

EDIT: I love Snopes.
 

bigdil511

New Member
Listen I have had serious credit issues due to a failed business, I have/had a ton of credit card debt and a repossessed work van. I was actually in the process of bankruptcy until about two weeks ago when me and my wife decided to tough it out and pay these people back. Actually through contacting our CC companies we basically got the debt reduced to 40% of what we owed and are working on paying them back now. Just to let you know I had a private interview at the PEPC to explain the situation to them, also I had an interview with an OPM investigator for the same reason, I have a class date and according to my HR I will have my FOL by today. So I wouldn't worry as long as you just didnt feel like paying your bills and you had a serious change in the amount of money you made. Just be honest and up front because they will find out everything anyway. Good luck!
 

mrmet86

New Member
Listen I have had serious credit issues due to a failed business, I have/had a ton of credit card debt and a repossessed work van. I was actually in the process of bankruptcy until about two weeks ago when me and my wife decided to tough it out and pay these people back. Actually through contacting our CC companies we basically got the debt reduced to 40% of what we owed and are working on paying them back now. Just to let you know I had a private interview at the PEPC to explain the situation to them, also I had an interview with an OPM investigator for the same reason, I have a class date and according to my HR I will have my FOL by today. So I wouldn't worry as long as you just didnt feel like paying your bills and you had a serious change in the amount of money you made. Just be honest and up front because they will find out everything anyway. Good luck!

Thanks for the information. I spent the last 5 years of my life in the mortgage industry and only spent within my means. My company gave me a hefty car allowance as well. After my layoff the only jobs i could find were offering to pay me a small percentage of what i used to make and the added car payment didnt help. so needless to say, im not a scumbag, if i had the ability to pay i would but I didnt expect to lose my career. I hope they understand this - if i get the opportunity to go to a PEPC.
 

bippoptl

Well-Known Member
Thanks for the information. I spent the last 5 years of my life in the mortgage industry and only spent within my means. My company gave me a hefty car allowance as well. After my layoff the only jobs i could find were offering to pay me a small percentage of what i used to make and the added car payment didnt help. so needless to say, im not a scumbag, if i had the ability to pay i would but I didnt expect to lose my career. I hope they understand this - if i get the opportunity to go to a PEPC.
dont worry mr. met, im sure you will be fine. you dont sound like a dirtbag or anything. i got a friend of mine who borrowed $800 from me 2 years ago and hasnt paid me back yet...now he's a dirtbag...
 

Craptastic

New Member
Listen I have had serious credit issues due to a failed business, I have/had a ton of credit card debt and a repossessed work van. I was actually in the process of bankruptcy until about two weeks ago when me and my wife decided to tough it out and pay these people back. Actually through contacting our CC companies we basically got the debt reduced to 40% of what we owed and are working on paying them back now. Just to let you know I had a private interview at the PEPC to explain the situation to them, also I had an interview with an OPM investigator for the same reason, I have a class date and according to my HR I will have my FOL by today. So I wouldn't worry as long as you just didnt feel like paying your bills and you had a serious change in the amount of money you made. Just be honest and up front because they will find out everything anyway. Good luck!
Thanks for clearing that up. :)
 
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