Why Lenders Use Plaid
Plaid is a data platform that connects borrowers’ bank accounts to lenders securely. By using Plaid, lenders can verify income, see cash flow, and detect risks in real time—without requiring paper statements.
Benefits for Lenders
- Verify employment and income quickly
- Identify risky patterns like overdrafts
- Streamline underwriting decisions
What It Means for Borrowers
When you connect your bank via Plaid, lenders may approve loans faster and with fewer documents. But it also means your transaction history becomes part of the lending decision. Understanding how Plaid works can help you make better borrowing choices.