The unsecured personal loans sector of the UK loans market is a burgeoning niche. At the top level exist prime lenders such as the high street banks. At the lower level are payday lenders specialising for those with bad credit scores.
The bond between all these different lenders is lending on an unsecured basis. Whereas Prime lenders will carry out a status check, payday lenders will only carry out a status check.
The difference between unsecured lenders in the UK
The difference between the two types of checks is marked. A credit check queries credit reference agencies to determine if an individual is worthy of a loan based on a credit score.
A status check on the other hand simply checks that an individual is in permanent employement and is basically who they say they are based on the details they put down on their application form.