What does Tier 5 credit refer to?

Is Tier 5 credit good? My lender told me that I'll have to settle for a higher interest rate on my car loan because I have Tier 5 credit.

Answer provided by
Eric Schad
Answered on Jul 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Tier 5 credit refers to people who have a credit score between 580 and 619.
These scores are generally perceived as the second-highest risk to lenders.
To offset this risk, lenders charge you a higher interest rate.
In some cases, they may also require a cosigner for a car loan unless you can make a sizable down payment.”

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