by 
The Curious Bag
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Better credit ratings open up several new avenues for borrowing, but certain scores, considered tier 1 and tier 2, maximize your creditworthiness. However, it may not be worth the extra work to get into tier 1.
Identification
Tier 1 credit scores are a category of borrowers that lenders consider the least risky, usually with a FICO above 720. Tier 2 are just below the best credit scores, usually 700 to 719.
Interesting Fact
According to the Fair Isaac Corporation, the United States has, on average, 30 percent of its population fall within the top two tiers of credit scores.
Differences
In all practicality, there are few differences or benefits to raising your credit score into tier 1 territory, reports CBS News. You might get a slightly better rate in tier 1, but most lenders just lump tier 1 and 2 together.
Time Frame
If your credit score falls below tier 1 or 2 status, it can take several years before climbing back up to at least tier 2, according to Elizabeth Razzi of Kiplinger. Typically, it takes 6 months to start improving a credit score.
Tips
To start getting into these top tiers, pay off as much debt as you can as soon as possible. Make sure to check your credit report often for any erroneous negative information.
Source:
Razzi, Elizabeth; What to Make of Your Credit Score
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