What is a tier-one credit score?

A credit score of 720 or higher is a tier-one credit score for new car financing. Tier-one is the most advantageous credit score tier. A credit score of 700 to 719 is in tier two, 670 to 699 is tier three, and 630 to 669 is tier four.

A credit score tells lenders how financially reliable the borrower is. The credit score system was designed to make the loan approval process simpler for lenders by allowing them to check a number rather than read an entire credit report. A computer program that computes data stored with the credit bureaus determines a credit score.