What Happens If I Don't Pay Back My Loan from Coinbase?
If you don't repay your Coinbase loan, they may sell your BTC collateral to cover the missed payment and any accrued interest. You still must repay the full amount of the loan, so make payments on time to avoid late fees. You can also pay off your loan early without any penalties.
Coinbase is one of the most common places where people buy and sell cryptocurrencies. The platform also allows users to borrow from a line of credit backed by US dollars. Borrowing from Coinbase is a way to get extra cash to buy more cryptocurrency when the prices are low. You can also withdraw money from your Coinbase account and use it for other purposes. However, one of the most common questions from Coinbase users is: What happens if I don't pay back my loan? Read on to find out.
What Happens if I Don't Pay My Coinbase Loan?
The answer to this question depends on the account you take from. If you borrow from the Coinbase line of credit, a late payment will result in the sale of your BTC collateral. The amount of BTC depends on the amount you owe and the BTC current market value. Any funds raised from the sale will go towards repaying the missed payment. If you don't have enough BTC to cover the entire loan, you will still be responsible for repaying the total amount plus any interest and fees accrued. You can contact customer service to learn more about the terms of your loan.
If you have taken a fixed-term loan from Coinbase, it will sell enough of your BTC collateral to cover the missed payment plus a 2% fee. The funds raised will go towards repaying the missed payment. If you don't have enough BTC to cover the entire loan, you will still be responsible for repaying the full amount plus any interest and fees accrued.
When Are Loan Payments Due?
When you borrow from Coinbase, you need to pay your monthly loan interest. Coinbase recommends making payments between the 1st and 15th of every month to avoid late payments, which may result in the sale of BTC collateral. You will receive a billing statement at the start of every month, and your first payment is due 30 days after your loan approval for fixed-term loans.
How Do I Pay my Coinbase Loan?
The easiest way to make a payment is through the Coinbase app. You can also log in to your account and make a payment from there.
To make a payment:
Login to your Coinbase account
Click on the "Borrow" tab
Click on the "Make a Payment" button
Enter the amount you want to pay
Click on the "Submit" button
Your payment is processed and applied to your loan balance. If you pay via a bank account, you may want to pay a few days early to ensure that your payment arrives on time. Additionally, you can use any cash in your Coinbase account to make an immediate payment.
Can I Pay My Loan Early?
Yes, you can pay your Coinbase loan early without any penalties. Coinbase encourages users to pay their loans off as soon as possible to avoid accruing interest. It doesn't charge a penalty for early repayment. You can call Coinbase customer service to make an early repayment or log in to your account and make a payment from there.
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