Credit health

What is loan health?

The health of your loan is based on the outstanding amount of your loan and the value of your BTC collateral. 

How is loan health determined?  

The health of your loan is based on a loan-to-value (LTV) ratio, which is calculated by dividing the amount of your loan by the value of your BTC collateral. Your loan health level is determined by subtracting the LTV from 100%. 

For example, if you borrow $100 and the value of your BTC collateral is $1000, your LTV is equal to 10% (100 / 1000 = 10%). The health of your loan is therefore 90% (100% - 10% = 90%).  

Loan health levels

Excellent: 70% and above

Good: 60% – 70% 

Warning: 40% – 60% 

Danger below 40% 

If your loan health falls below 40%, we’ll ask you to add BTC collateral or make a payment. If no action is taken, Coinbase will sell just enough of your BTC collateral to increase your loan health to 50%.

What affects my loan health?

The price of BTC: If the price of BTC drops significantly, your loan health may decrease. Coinbase will notify you via email to let you know that you’ll need to repay part of your principal or add collateral to maintain your loan health.

Missed payments: If we don’t receive payment by the 15th, Coinbase will sell off just enough of your BTC collateral to cover the missed payment plus 2% of the total transaction. You can review your loan agreement for further details.

How can I improve my loan health?

You can improve loan health by adding BTC collateral, or making a USD payment (available when your loan health falls to 60% and below).

Add BTC collateral

Mobile 

1. Sign in to your  Coinbase app

2. Tap

3. Scroll down to tap your loan

4. Tap Add collateral 

5. Select the minimum, recommended or custom amount

6. Follow out remaining prompts

Computer

1. Sign into the Borrow homepage

2. Click the portfolio link at the top of the screen

3. View your loan summary on the right side of the page

4. Click on Loan health

5. Click Add collateral

6. Select the minimum, recommended or custom amount

7. Follow out remaining prompts

Make a payment (if your loan health is 60% and under)

Mobile

1. Sign into your  Coinbase app

2. Tap

3. Scroll down to tap your loan to view it

4. Tap Make payment to make a payment

Computer

1. Sign into the Borrow homepage

2. Click the portfolio link at the top of the screen

3. View your loan summary on the right side of the page

4. Click View Details to see more information and make a payment