No. of Recommendations: 3
I called Amex and the rep told me that Amex could "reallocate" the line of credit that I have on the other 2 cards and put it on the SPG card, which sounds like an OK deal to me. However, since that conversation I've been wondering what kind of impact this "reallocation" will have on my credit score. I have also been thinking about closing my Amex Blue and Amex clear accounts and just having the SPG card with Amex.

Reallocating credit between different credit lines can be a good way to get your credit lines aligned with your planned spending patterns.

If you reallocate (rather than close), just be sure to keep enough credit on Amex Blue and Amex Clear so that the usage you have on those accounts won't be more than 50% or so in any one month.

If you close the Blue and/or Clear accounts, be sure to have the credit lines allocated to your SPG card as part of the closure process, so you don't lose that credit availabilty.

If your Blue and Clear cards are some of your older accounts, and you are concerned about potential hits to your credit score, you may want to close one at a time, starting with the newer one, check your credit score to see what changes have occurred, and then decide whether to close the other one.

Before you take the step of closing your Clear and Blue accounts, I would also suggest you make sure that you evaluate any annual fees that you will be charged on the SPG card vs. the other cards. The terms and conditions page I was able to find on AmEx's website https://www304.americanexpress.com/personal-card-application... shows a $0 fee for the first year, and $65 a year after that for the SPG card. Do your Clear and Blue cards have annual fees? (some do, some don't - depending on the rewards you have and when you got the card) So if you aren't going to want to pay the SPG fee in a year, you may want to keep one of those accounts open to rellocate your credit line back to, if you end up closing the SPG card.

AJ
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