In marketing it often seems like there’s a rule of three. Just as the Olympics have winners of Gold, Silver and Bronze medals, products are often marketed as “Good, Better, Best.”
So it goes with credit scores as well. Consumers are often ranked as Tier 1, Tier 2, and Tier 3 credit risks, based on these scores. Alternately, some lenders use an A, B, and C grouping, or even Platinum, Gold and Silver.
But these Tier 1/2/3 scoring systems aren’t just fancy marketing schemes. The higher your ‘tier’, the lower the potential monthly payment on your new car. That’s because the higher your FICO score, the better your chance of getting access to the best loan rates.