Loan health in Wirex Credit is an indicator of the strength of your loan, determined by the outstanding amount of your loan and the value of your collateral.
How is loan health calculated?
Loan health is calculated using the loan-to-value (LTV) ratio, which is determined by dividing the amount of your loan by the value of your collateral. The loan health level is determined by subtracting the LTV from 100%.
For example, if you have a loan of $100 and the value of your collateral is $1000, your LTV is 10% (100 / 1000 = 10%). Your loan health would therefore be 90% (100% - 10% = 90%).
Loan health levels
Excellent: 70% and above
Good: 60% - 70%
Warning: 40% - 60%
Danger: Below 40%
Please note: If the price of your collateral decreases, your loan health may be impacted. Wirex should notify you if you need to repay some of your loan or add more collateral to maintain your loan health. However, if the collateral rate drops drastically, we may not have time to send you a warning message. We recommend tracking the LTV in the Credit line details regularly.