Credit Tier

A credit tier groups borrowers by creditworthiness based on credit score ranges. Tier 1 represents the strongest profiles and qualifies for the lowest rates. Lower tiers carry higher rates and more restrictive terms. Each lender defines their own tier structure.

Credit tier directly determines the financing options available on a deal and the dealer reserve opportunity. F&I managers need to understand each lender's tier matrix to structure deals effectively, route applications to the right lender, and set realistic payment expectations.