How Does Loansmack Work?
Note: As of March 6, 2017, Loansmack’s website was having technical difficulties.
Loansmack is a company that aims to help consumers with their student loans. It was founded in November 2017 by graduates who had nearly $100,000 in student debt. Based in New York City, the founders wanted to help other graduates like them better understand their student loan choices.
Loansmack provides resources and services on the various student loan (whether they are from private lenders or the government) and refinance options (consolidation loans from either private banks and lenders or from the federal government) available to help borrowers make better decisions. The company also helps borrowers find and understand personal loan options for individuals and businesses.
What Are the Benefits of Loansmack?
If you want to take out a student loan or personal loan, or if you’re looking to refinance your existing loans, it’s easy to get overwhelmed by the options. After all, it’s not just banks and big lenders that are in the student loan and personal loan space these days. There are numerous online companies that have also entered into the business in the past several years.
These companies offer various loans with different term lengths, interest rates, and fees. There are also some companies that offer options – like the ability to get a student loan without a co-signer or bonuses if you get good grades. It can be challenging to narrow down the choices.
In the past, it could be tedious and confusing to research each loan to find the right one. But Loansmack allows you to learn more about and compare a large number of student loan and personal loan lenders in one place.
On its site, you can compare the features of different loan products so that you have a better idea of which is right for you. It has reviews of each of the lenders to help you understand the terms of the loans better, which can help you make a better-informed decision.
One big benefit of Loansmack is its Payout Program. If you refinance your loan with one of the lenders that it reviews, you might be eligible to get a portion of its Payoff payments each month to help you pay off your student loans.
What Are the Costs and Negatives of Loansmack?
There’s no fee to use Loansmack to compare loans. If you refinance with one of the lenders featured on the site, there is a chance that the company will get a commission on your refinanced loan. Some of this money goes toward the Payout Program. This sounds like a great deal, however the amount of money that Loansmack gives out is quite low.
For example, in January 2018, Loansmack gave out $1,000 through its program – but that money was divided between everyone who had refinanced through the company. That could turn out to be little more than a few dollars or even a few cents. That’s unlikely to make a dent in your student debt.
Another downside is that Loansmack’s advertising disclaimer says that the company may receive compensation from its lending partners and that the compensation they receive may affect the placement of the lenders on their sites. For this reason, it is important that you do your own research before choosing the lender that’s right for you.
You also might prefer to use student loan or personal loan marketplaces where you can answer a few questions about yourself and get an estimate of whether you would qualify and what you would pay with a number of their lending partners. This can be simpler than going to each of Loansmack’s partners and submitting an application after reading the reviews.
The Bottom Line
Overall, Loansmack provides helpful information about student loans and personal loans. It could be a starting point to find out more about your student loan options. Just be sure to do your due diligence to make sure any loan product you apply for is a good choice for you regarding terms, costs, and benefits.