Toyota Credit Tiers | Kenny Kent Toyota (2024)

FAQs

What is tier 1 credit Toyota? ›

The most favorable Toyota financing deals are often reserved for customers with the strongest credit. Here are the tiers of credit as it relates to car finance. Tier 1 – 720 and above, excellent credit. Tier 2 – 690-719, considered very good. Tier 3 – 670-689, considered good.

Tier One – Considered exceptional credit, scores ranging from 800 – 850. Tier Two – Considered very good credit, scores ranging from 740 – 799. Tier Three – Considered good credit, scores ranging from 670 – 739. Tier Four – Considered fair/poor credit, scores ranging from 300 – 669.

A tier 2 credit score is a score that falls within the range of 670 and 799. Higher credit scores would be categorized within the first credit tier while scores below 670 would fall under the third credit tier.

In FICO's scoring model, scores in the 800 to 850 range are considered exceptional, or best. A given lender, however, may consider scores in the 750 to 850 range as best and categorize those borrowers as tier 1.

A typical Tier 2 range would be from about 660 up to that lender's Tier 1 level. And Tier 3 generally starts in the low 600s. The Tier 1/2/3 designations don't extend into the “subprime” borrowers with scores below 600, but we'll talk more about those as well. Photo by REDPIXEL - stock.adobe.com.

In such situations, Tier 1 is the top level, typically referring to a credit score of at least 700, or sometimes a minimum score as high as 750. Basically, this tier encompasses borrowers with the best credit scores. Tier 2 typically ranges from a credit score of about 660 up to the lender's Tier 1 level.

The automotive supply chain can be segmented into Tier 1, Tier 2 and Tier 3 suppliers. Tier 3 form the foundation, supplying raw materials, such as metals and plastic, needed by Tier 2 and Tier 1 suppliers. Tier 2 suppliers buy raw materials from Tier 3 and use them to produce parts needed by Tier 1.

Toyota Financial Services requires you to have a score of at least 610 to qualify for an auto loan. And to nab Toyota's 0.00% interest deal (if it's available), you must have a credit score of at least 690.

Tier 2 suppliers are often experts in their specific domain, but they also support a lot of non-automotive customers and so they don't have the ability or desire to produce automotive-grade parts. In the automotive industry, the term Tier 3 refers to suppliers of raw, or close-to-raw, materials like metal or plastic.

To qualify for Toyota finance, your credit score should be at least 610. Customers with lower credit scores will generally get higher interest rates. The most appealing financing offers are typically reserved for those “well-qualified buyers”!

What credit score do I need to get a $25,000 car loan? ›

While there is no set credit score to get an auto loan, a majority of approved borrowers have scores above 660. Having a low credit score won't necessarily keep you from getting an auto loan, but you will likely pay a higher interest rate.

Tier 7: A very poor score of 580 to 609 means you “have significant credit issues or have only very recently established credit.” Tier 8: An extremely poor score of 579 or below means you “have an extremely poor credit history or I have no credit history at all.”

What Is Tier 1 Credit? This is the top rung of credit and generally means that an individual's credit score is considered excellent. Shoppers who never run late on or miss payments, keep low balances, and use their credit wisely typically fall in this category.

Tier 2 Credit: Considered a very good credit score, scores ranging from 740 – 799. Tier 3 Credit: Considered good credit with scores typically ranging from 670 – 739. Tier 4 Credit: Considered fair or poor credit, with scores that can range from 300 – 669.