Does a Credit Freeze Affect a Background Check?

A credit freeze protects your personal financial information, while a background check verifies an individual’s history for various purposes. These checks often include a review of employment, education, or criminal records. This article explains how a credit freeze interacts with different types of background checks, clarifying which ones might be affected and how to manage the situation.

Understanding Credit Freezes

A credit freeze, also known as a security freeze, restricts access to your credit report. Its primary purpose is to protect consumers from identity theft by preventing unauthorized parties from opening new credit accounts in your name. When a credit freeze is active, credit reporting agencies like Equifax, Experian, and TransUnion are prohibited from releasing your credit report to most third parties. This measure effectively blocks attempts by fraudsters to misuse your personal information for financial gain.

A credit freeze differs from a credit lock or a fraud alert, though all aim to enhance security. A credit lock often provides a more convenient way to control access to your credit report through a mobile app or online service. In contrast, a fraud alert places a notice on your credit report, encouraging lenders to take extra steps to verify your identity before extending credit, but it does not block access entirely. A credit freeze is a more robust protection, as it directly prevents access until you temporarily lift it.

Types of Background Checks

Background checks are common for various applications, including employment, housing, or volunteer positions. Some background checks focus on verifying non-financial information, such as criminal history from court records and public databases. Other common non-credit checks include verifying educational degrees, previous employment history, or conducting drug screenings. These types of checks do not typically involve accessing your credit report.

Conversely, certain background checks involve a review of your financial history. These credit-based background checks are often conducted for roles that involve handling money, managing financial data, or holding fiduciary responsibility, such as positions in banking or finance. Landlords also frequently use credit checks to assess a prospective tenant’s financial responsibility and payment habits. These checks typically involve a “soft pull” of your credit report, which does not affect your credit score.

Impact of a Credit Freeze on Background Checks

A credit freeze directly impacts background checks that require access to your credit report. If an employer, landlord, or insurance provider attempts to perform a credit-based background check while your credit is frozen, their access will be blocked. This occurs because the freeze prevents consumer reporting agencies from releasing your credit file, which is necessary for these entities to assess your financial history. Consequently, a credit freeze can delay or prevent the completion of such background checks.

However, a credit freeze does not affect all types of background checks. Checks that do not rely on your credit report, such as criminal history checks, education verification, employment history verification, or drug tests, will proceed without interruption. These non-credit related checks draw information from other sources independent of your credit file. Even if a background check involves a “soft pull” of your credit, which normally does not impact your credit score, a credit freeze will still prevent this access.

Temporarily Lifting a Credit Freeze for a Background Check

When a credit-based background check is necessary, you will need to temporarily lift, or “thaw,” your credit freeze. This process involves contacting each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. You must contact each bureau individually, as placing a freeze with one does not automatically freeze your report with the others.

Each credit bureau offers multiple methods for lifting a freeze, including online portals, phone, or mail. For online or phone requests, the freeze is lifted within an hour. If you submit a request by mail, the bureaus are required to lift the freeze within three business days of receiving your notice. You will need to provide identifying information:

• Your full name
• Social Security number
• Date of birth
• Current and previous addresses for the past two years
• A copy of a government-issued identification card
• A utility bill or bank statement for address verification

You may also be given options to temporarily lift the freeze for a specific period, such as a few days, or to provide a one-time access code to the entity requesting the background check. After the background check is completed, re-freeze your credit reports to restore your protection.