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 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.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.