What is Tier 1 Credit?

If you watch television or listen to the radio often or regularly, you most likely have heard automobile commercials use the phrase “tier 1 credit.” For example, a commercial on TV or the radio may specify a particular lease deal on a particular make and model of car and subsequently mention that the deal is available to tier 1 credit customers only. Once this is mentioned, many people often wonder what exactly tier 1 credit is and whether or not their credit score is high enough to be classified as “tier 1.” In this article, we will explain what tier 1 credit is and what credit score can be considered tier 1.

Tier 1 credit customers are classified as having the highest credit scores. A tier 1 credit rating is one that provides you with the best deals available on auto leasing or auto financing. Generally speaking, a FICO credit score of 720 or higher is identified as tier 1 credit. Tier 1 credit customers can obtain the lowest interest rates and the lowest payments possible because they are considered the most responsible and least risky credit customers. If your credit score isn’t considered tier 1, it could be tier 2, tier 3, tier 4 or even lower. Each tier below tier 1 would give you increasingly higher interest rates, which would also give you increasingly higher car payments.


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