Bad Credit Loans and How to Get a High Loan to Value Ratio

Have you ever tried getting a loan from a bank or traditional lending provider? It doesn’t always go as advertised. Often times, the low-interest rates, favorable conditions, and the high loan to value ratio (LTV) on collateralized loans are reserved for only the premier borrowers. For the people with average or below credit history, good luck trying to get an attractive lending plan, or any plan at all for that matter. All this being said, there is another way. 

Cryptocurrency backed lending platforms offer loans to people from all backgrounds. Even with bad credit loans are not only possible, but they come with a high LTV as well. So if you’re in need of some cash, here’s how to get it.

How to get bad credit loans with cryptocurrency lending platforms

It’s not that cryptocurrency lending platforms only give bad credit loans but instead, are open to borrowers from all backgrounds. Cryptocurrency lending platforms do not perform credit checks on their clients because they don’t need you. Each loan is secured via a cryptocurrency asset. If the borrower fails to pay back the loan, then they do not get their cryptocurrency back. It’s simple as that. 

This opens the door for anyone with cryptocurrency to qualify for a loan when they need it most. No more going to the bank, waiting in line and filling out piles of paperwork just to be denied a loan or offered some insulting amount. With a crypto-backed loan platform you just sign up, deposit crypto and you instantly qualify for a loan with a high loan to value ratio and instantaneous cash.

Bad credit loans are obsolete; what do to with your high loan to value ratio 

The days of getting denied on your bad credit loans are over. Here are a few things you can do with a crypto-backed loan:

1. Reinvest -  Even if you don’t need a loan, a crypto-backed loan is a great way ot obtain more capital without having to sell your crypto assets. An instant cash loan can help you reinvest that money into the crypto market, taking advantage of price drops so you profit later when the market rises. 

2. Earn Interest - Some crypto lending platforms offer savings accounts where you can deposit a cryptocurrency (e.g. TUSD) and earn up to 12% in some cases. Hence, one strategy is to use Bitcoin (BTC) as collateral for a loan, convert that fiat into a stablecoin and deposit it into a savings account where it will earn passive income for you every week.

3. Short and long the market with Multi HODL - FinTech platform YouHodler has a unique tool they custom-built to help users short and long the market using crypto loans. The user can simply press the “Up” or “Down” button on the application to ignite a “chain of loans.”
   
   How many loans in the chain is up to the user via sliding “multiplier” button. The higher the multiplier, the more loans in the chain. Once the process is started, YouHodler’s chain of loans helps the user either buy or sell more crypto depending on the direcion they chose. If hte market moves in teh correct direction they chose, then they profit.
   
   Now, playing with the market is not only for whales but for everyone. The Multi HODL tool makes it very easy ot profit off the tiniest of market movements in any direction. It’s just one of many ways to use bad credit loans to your advantage.