Credit Tiers

Credit tiers are grouping of customers according to credit score. People with higher scores have a greater likelihood of having their applications approved and generally pay lower interest rates. Consumers are generally grouped together according to different ranges of scores. Lenders may use different score ranges to determine credit tiers but, as an example, scores over 800 would represent the top tier, scores from 720 to 800 the next-best tier, 670 to 720 the next, and so on. These tiers mean that a matter of a few points can make a big difference, if you happen to fall near the bottom or the top of a particular tier.