Rebuilding Credit After Incarceration: Where Do I Start?

For many people leaving prison, credit is either nonexistent or badly damaged. Without credit, getting housing, buying a car, starting a phone plan, or even applying for a job can be incredibly difficult. But the good news is that credit isn’t permanent—it can be rebuilt.

At A Better Tomorrow (ABT Community), we help formerly incarcerated individuals take control of their finances and build strong credit histories. In this blog, we break down exactly where to start.

What Is a Credit Score—and Why Does It Matter?

Your credit score is a number that shows how trustworthy you are as a borrower. It’s based on your history of paying bills, managing debt, and using credit. Most credit scores fall between 300 and 850.

• 300–579: Poor

• 580–669: Fair

• 670–739: Good

• 740–799: Very Good

• 800+: Excellent

Why it matters:Your credit score affects your ability to rent an apartment, finance a vehicle, apply for credit cards, or get a loan. In some states, employers may even review your credit when you apply for a job.

Step 1: Check Your Credit Report

Before you can fix your credit, you need to know what’s on your record. Start by ordering your free credit reports from:

• AnnualCreditReport.com – You’re entitled to one free report per year from each of the three major bureaus: Equifax, TransUnion, and Experian.

Look for:

• Accounts you don’t recognize

• Debts that have been paid off but still show as open

• Missed payments or collections

• Accounts from before or during incarceration

Step 2: Dispute Inaccurate Information

If you see anything that looks incorrect or outdated, you have the right to dispute it.

• Write to the credit bureau and explain the error

• Include copies of any documents you have

• The bureau has 30 days to investigate and respond

At ABT Community, we offer support in filing disputes and understanding your report.

Step 3: Start Small—Open a Secured Credit Card

If you don’t have any credit history, you can start by opening a secured credit card.

• You deposit a small amount of money (usually $200–$500)

• That money becomes your credit limit

• You use the card for small purchases and pay it off on time each month

This builds a positive payment history, which is the biggest factor in your credit score.

Step 4: Pay Down Existing Debt

If you have unpaid debts—especially collections—start working to pay them down. Focus on:

• Recent collections (the newer the debt, the more it hurts your score)

• High-interest accounts

• Negotiating settlements with debt collectors if you can’t pay in full

We recommend setting up a monthly budget and using part of your income to chip away at debt. ABT offers budgeting workshops to help you manage this.

Step 5: Become an Authorized User (If You Have Support)

If someone you trust—like a parent or partner—has a credit card in good standing, they can add you as an authorized user.

• You don’t have to use the card

• You “borrow” their positive history, which helps your score

• Make sure the lender reports authorized users to credit bureaus

This can be a fast and safe way to improve your credit, but it only works if the primary cardholder pays bills on time.

Step 6: Make On-Time Payments—Every Time

Payment history makes up 35% of your credit score. Even one late payment can hurt your progress.

• Set reminders or auto-pay

• Pay at least the minimum amount due

• Don’t max out your cards—keep usage below 30% of your credit limit

Consistency is key. Over time, these small steps create lasting results.

What ABT Community Offers

At A Better Tomorrow, we understand how difficult it is to rebuild from scratch. That’s why we offer:

• One-on-one financial coaching

• Help ordering and reviewing credit reports

• Workshops on budgeting and saving

• Guidance on opening secured credit cards and banking accounts

We don’t just talk about financial empowerment—we help you make it real.

Final Thoughts: You Deserve a Fresh Start

Bad credit isn’t a life sentence. You have the power to rebuild your financial future, step by step.

Your credit history may reflect your past—but your credit future is yours to write. And ABT Community is here to walk with you every step of the way.

📚 Sources:

1. Consumer Financial Protection Bureau (CFPB). (2023). Understanding Credit Scores. https://www.consumerfinance.gov

2. Federal Trade Commission (FTC). (2022). Disputing Errors on Credit Reports. https://www.consumer.ftc.gov/articles/how-dispute-credit-report-errors

3. AnnualCreditReport.com. (2023). Request Your Free Credit Reports. https://www.annualcreditreport.com