# Credit Tier

Canonical URL: https://fundmyequipment.com/learn/glossary/credit-tier/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_glossary

## Summary

Category based on credit score. Excellent (720+), Good (680-719), Fair (640-679), Subprime (600-639), Bad (<600).

## Content

Credit tier is the bucket a lender places you in based on your credit profile. Each tier maps to a specific rate range, term range, and down-payment requirement.
Standard tier definitions

TierFICOTypical APRTypical termTypical DP

Excellent720+6.9-9.9%60-84 mo0-10%
Good680-7199.9-13.9%48-72 mo5-15%
Fair640-67913.9-17.9%36-60 mo10-20%
Challengedbelow 64017.9-24.9%24-48 mo15-30%


These are blended ranges across our partner lenders as of 2026. Your actual tier and rate depend on the specific lender's program.
Other tier factors
FICO is the primary input but not the only one. Lenders also consider:

Time in business
Monthly revenue
Industry (some industries are restricted)
Business credit (Paydex score)
Public records (bankruptcies, tax liens)
Asset value (the equipment itself)

Moving up tiers
Most credit-tier improvements take 6-24 months: pay off revolving balances, dispute errors, build tradelines, time-out old negative marks. If you are currently in Fair or Challenged, the rate difference of moving up one tier can be $5,000-$20,000 of interest savings on a $100,000 5-year loan.