How Do I Cancel My Loan from Coinbase?
Coinbase allows account holders to borrow money based on their overall account balance While it does not have a mechanism for canceling a loan transaction once it has been started, you can immediately repay the loan. Once repaid in full, reach out to customer service to close the line of credit.
Coinbase made headlines when it started offering loans on crypto of up to $1 million. Many users have taken advantage of this offer to maximize the benefits of their Coinbase accounts, but what do you do if you change your mind about a loan? How do you cancel your loan from Coinbase? You can learn more about Coinbase account management by contacting customer support here, and below is information on loan cancellation or closing.
How do Coinbase Loans Work?
When checking the online support topics on Coinbase's website, you will find there are no specific instructions for canceling a loan. Coinbase does not allow cryptocurrency transactions to be canceled once they are started. When a loan is initiated the required collateral, cryptocurrency in your account, is transferred from your wallet to a collateral wallet initiating the transaction. There is, however, something you can do if you've changed your mind about the loan.
How do You Close Your Line of Credit?
The only option available if you no longer want your Coinbase loan is to repay it in full and close the line of credit. This will satisfy any financial requirements you have in conjunction with your loan. Next, you must contact Coinbase customer support here and request the line of credit is completely closed. This will prevent any further transactions from that account.
There are no penalties for paying off your Coinbase loan early so you can close or cancel the line of credit. Paying off your loan early will help reduce your cost in interest payments.
When Can Coinbase Sell Collateral or Cancel Your Loan?
There are certain situations when Coinbase will sell your collateral or lock your account and sell all the assets in it. If Coinbase has to sell any of your collateral holdings, it will charge a two percent transaction fee in addition to the amount sold. These are listed below:
- The credit health of your account drops below 40 percent. At this point, Coinbase will only sell enough of your collateral to get you back up to the minimum level. You have 72 hours to add funds to your collateral wallet to avoid Coinbase selling a portion of it.
- If your credit health drops below 15%, Coinbase can sell your collateral without delay to bring you back up to 50 percent.
- If you have not submitted your payment by the 15th of each month, Coinbase can sell enough of your collateral wallet to cover the payment.
- Violation of your loan agreement or the general terms and conditions of using Coinbase is grounds for it to close your loan and sell your entire collateral wallet. If you don't have enough in your collateral wallet to cover the repayment and transaction fee, Coinbase can also sell crypto held in your Coinbase wallet.
While Coinbase does not have protocols to cancel a loan once the transaction has been initiated, you can immediately repay the entire loan amount and request customer service close your line of credit. For more information or assistance, contact Coinbase customer support here.
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