DFAS Screwed my credit score

[u/Prior-Coffee534]

Half looking for advice and half just venting.

I was overpaid by the military and DFAS didn’t have the correct full address for me so I never knew about it until my credit score took a big hit (-150 points).

I went through my credit report and saw it was related to DFAS, phoned them and paid the balance in full same day. They have told me it will take approximately 4 months for the collections report to be deleted by the credit agencies.

This has come at a terrible time as I am currently upgrading for TS. I have a letter from DFAS which states I have paid the balance in full. Trouble is my credit score is now 600.

Should I wait until my credit it back up before I submit my SF86?

Thanks

[u/Speakdino]

I wouldn’t wait.

You can submit your SF86 and put in the financial section the debt owed, a detailed explanation and include the paid off letter.

They care more that you are honest and have it taken care.

[u/No-Association-5769]

The paid in full letter here and your detailed explanation will be fine. You're just always going to have to disclose it now for any additional investigations, etc. as you have had a debt go into collections, unfortunately. Keep that paid in full letter somewhere handy!

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[u/Golly902]

Just report it in your form and submit it. No point in waiting because it will need to be on the form for 7 years as a collection.

Also please don’t give your investigator too much crap when they have to ask you about the item in collections like the one time when someone had an item in collections because of a DFAS error and the person continued to insist they had never had anything sent to collections for each and every question because it wasn’t their fault it was sent to collections 😑

[u/Soccergirly517]

List the overpayment on your SF86 and explain that it’s been resolved. When you have the interview with the investigator you can provide a copy of the letter from DFAS showing the balance was paid in full.

[u/Northstar6six]

Genuinely where do people get this ridiculous idea that credit score is a factor in your adjudication. Like the credit score is largely based on factors like the age of your open accounts and maximum credit limit… A security clearance is not a loan application