How does starting a company affect my credit score

[Sir Humphrey]

I am currently in full time employment, saving up to buy a house/flat next year, I also want to set up a limited company in my spare time this year, will that affect my credit score and how badly?

[Sarnie]

Sir Humphrey said:

I am currently in full time employment, saving up to buy a house/flat next year, I also want to set up a limited company in my spare time this year, will that affect my credit score and how badly?

Will you be applying to bank accounts and overdrafts/credit facilities etc? If so, a small number of searches isn't going to cause too many issues, unless it's borderline already??

[Sir Humphrey]

Sarnie said:

Will you be applying to bank accounts and overdrafts/credit facilities etc? If so, a small number of searches isn't going to cause too many issues, unless it's borderline already??

I've got the cash to do what I need to do with no need for an overdraft, so it should just be a bank account with no credit.

[Sarnie]

Sir Humphrey said:

I've got the cash to do what I need to do with no need for an overdraft, so it should just be a bank account with no credit.

Bank account opening will still involve a credit check but as per previous, isn't really an issue.....

[Ozzie Osmond]

Sir Humphrey said:

I am currently in full time employment, I also want to set up a limited company in my spare time this year,

Depending what employment you are in you may need to check your contract because "full time" employment contracts sometimes say "this must be your only employment". Setting up a business on the side could be a potential issue.

[Sir Humphrey]

Sarnie said:

Bank account opening will still involve a credit check but as per previous, isn't really an issue.....

Perfect.

Ozzie Osmond said:

Depending what employment you are in you may need to check your contract because "full time" employment contracts sometimes say "this must be your only employment". Setting up a business on the side could be a potential issue.

I have no problems with that, as long as I'm not competing with them head on and I don't use their time to work on it they don't mind. One of my colleagues even got flexible working to let him run his side project.