Worried That Your Finances Could Derail Your Clearance? Here’s How to Get Ahead of the Problem

You’ve worked hard to qualify for a position that requires a security clearance—maybe in the military, as a federal employee, or in the private sector supporting classified operations. But now you’re facing a new, unexpected hurdle: your finances.

Maybe your credit score took a hit during a rough patch. Maybe you fell behind on student loans or medical bills. Or perhaps you co-signed a loan for someone else, and that debt is now showing up as delinquent. Regardless of the details, you’re asking yourself: Will this affect my clearance? Can I fix it in time?

The good news? Yes, you can take action now to significantly improve your chances of success. At National Security Law Firm, we’ve helped countless clients clean up their financial profiles before applying for a clearance—and we know exactly what works.

This post will walk you through the steps to get your finances “clearance ready,” explain what investigators look for under Guideline F (Financial Considerations) of the National Security Adjudicative Guidelines, and show you how we can help you move forward with confidence.

Why Finances Matter in Clearance Investigations

Your financial history isn’t just a credit score—it’s a window into your judgment, reliability, and trustworthiness. The government’s concern is simple: financial problems can create vulnerability to coercion, exploitation, or undue influence.

Under Guideline F, common financial red flags include:

  • Unpaid or charged-off debt

  • Foreclosures

  • Repossessions

  • Delinquent taxes

  • Bankruptcies

  • Unexplained affluence

  • Ongoing patterns of living beyond one’s means

But here’s the key: having financial issues doesn’t automatically disqualify you. What matters most is how you handle those issues—and whether they reflect poor judgment or a lack of integrity.

Step-by-Step Guide: How to Clean Up Your Finances Before Applying

1. Pull All 3 of Your Credit Reports (and Review Them Closely)

Before applying for a clearance, you should review your full credit history with Experian, Equifax, and TransUnion. You can get all three reports for free at AnnualCreditReport.com.

Look for:

  • Delinquent accounts

  • Collections

  • Charged-off debts

  • Public records (liens, bankruptcies)

  • Errors or outdated information

Hypothetical Example:
“Chris, a federal contractor, pulled his credit report and discovered a 2017 medical bill that had gone to collections due to a miscommunication with his insurer. By resolving the debt and obtaining a paid-in-full letter, he was able to include that documentation in his clearance application and head off any potential red flag.”

2. Bring Delinquent Accounts Current or Set Up Payment Plans

If you have overdue accounts, it’s critical to address them before applying. Security clearance adjudicators are looking for evidence that you are:

  • Taking responsibility

  • Making consistent efforts to repay debt

  • Not ignoring the problem

You can often negotiate with creditors to settle for less than the full balance or arrange a payment plan. Keep written records of any agreements, payments, or correspondence.

Pro Tip: A payment plan that is in good standing is usually viewed more favorably than simply leaving the account unresolved.

3. File (or Amend) Past Due Tax Returns

Unpaid or unfiled taxes are viewed as especially serious under Guideline F. If you’ve fallen behind:

  • Work with an accountant to file or amend past returns

  • Set up a formal IRS payment plan if you owe back taxes (IRS Payment Plan Link)

Hypothetical Example:
“Maria failed to file her taxes during a difficult two-year period. Before submitting her SF-86, she worked with a tax professional to file all past-due returns and entered an IRS payment plan. She disclosed the issue proactively, which helped establish credibility and mitigated the risk.”

4. Explain Any Bankruptcy or Foreclosure with Full Context

If you’ve filed for bankruptcy or experienced foreclosure, these events can be mitigated—especially if they resulted from factors beyond your control, such as medical issues, divorce, or job loss.

Provide documentation and a written explanation outlining:

  • The circumstances leading to the event

  • Steps you’ve taken since to stabilize your finances

  • Why the issue is unlikely to recur

5. Avoid New Debt and Monitor Your Spending

Excessive or impulsive spending can raise concerns. During the months leading up to your application:

  • Avoid taking on unnecessary debt

  • Don’t open new lines of credit

  • Stick to a manageable budget

  • Track expenses to demonstrate responsibility

Security clearance investigators often conduct interviews and check financial records during the background check phase. Living within your means shows discipline and reliability.

6. Be Honest on Your SF-86

When completing your SF-86, disclose all required financial information—even if you think it looks bad. Omissions are often viewed more negatively than the financial issues themselves.

You will be asked about:

  • Delinquencies over 120 days

  • Bankruptcies

  • Foreclosures

  • Tax issues

  • Wage garnishments

  • Repossessions

Pro Tip: If in doubt, disclose it. Then explain it.

Pricing and Legal Financing Options

We offer flat-fee services to help you prepare your financial disclosures and get clearance-ready:

  • SF-86 Review: $950

  • Pre-Clearance Financial Risk Review with Legal Memo: $2,500

  • Full Clearance Representation (including SOR/LOI response and hearing, if needed): $5,000–$7,500 depending on stage

Concerned about cost? We’ve got you covered. Through Pay Later by Affirm, clients can split payments over 3, 6, 12, or 24 months—fast approval, no hard credit check. Learn more:
👉 https://www.nationalsecuritylawfirm.com/financing/

Why Choose National Security Law Firm?

When your future depends on a successful security clearance, you can’t afford to take chances. At NSLF, this is all we do—and we do it better than anyone.

  • ⭐ 4.9-star average on Google: Read real client reviews

  • 🛡️ Attorneys with decades of experience in clearance adjudication, national security, and federal law

  • 🧠 We hold weekly “Attorney Review Board” sessions to refine complex strategies

  • 📍Located in Washington, D.C., where most clearance decisions are made

  • 🪖 Founded by disabled veterans—our team includes former military, prosecutors, and federal security professionals

We bring insider knowledge and aggressive defense to every case. From pre-application risk assessments to high-stakes appeals, we’re ready to fight for you.

Additional Resources

Want to learn more about the clearance process and how to avoid common pitfalls?

Check out our Security Clearance practice area page for detailed guidance on:

  • Top mistakes to avoid when applying for clearance

  • Strategies to respond to a Statement of Reasons

  • Common myths about the clearance process

  • How to win a clearance appeal

👉 https://www.nationalsecuritylawfirm.com/security-clearance/

It’s your one-stop resource for mastering the clearance process and maximizing your chances of success.

Don’t Wait Until It’s Too Late—Start Cleaning Up Your Finances Now

The best time to fix clearance-related financial issues is before they become a reason for denial.

We can help you get ahead of the problem, document your progress, and present a compelling case. Don’t guess your way through the process. Don’t delay and risk making a costly mistake.

The sooner you act, the better your chances of success.
Let us give you a clear plan, peace of mind, and a stronger application.

👉 Book your free consultation now. It’s quick, easy, and confidential.

You’ve worked too hard to let past financial mistakes hold you back.
Let us help you move forward—with clarity, confidence, and the clearance you deserve.

National Security Law Firm: It’s Our Turn to Fight for YOU.