American Airlines AAdvantage® MileUp℠ from Citi Review

American Airlines AAdvantage® MileUp® Credit Card Review

American Airlines AAdvantage® MileUp® Credit Card is designed for those who are looking for a starter rewards card with a $0 annual fee. An attractive sign-up offer of 10,000 bonus miles and a $50 statement credit after making $500 in purchases within 3 months, and increased miles rewards on groceries sound like a great option for infrequent American Airlines travelers. Despite its drawbacks like a foreign transaction fee, lack of perks for regular travelers, and no intro APR period - the American Airlines AAdvantage® MileUp® Credit Card might become an interesting option for you if you don't have a rewards credit card yet.

American Airlines AAdvantage® MileUp®: pros and cons

American Airlines AAdvantage® MileUp®: rewards system in a nutshell

We wouldn’t say that the MileUp credit card has an excellent rewards system. The only 2 categories where you can get 2x miles per $1 spent are groceries and eligible American Airlines purchases. You will get 1 mile per $1 spent on all other purchases. However, considering the fact that the credit card has no annual fee - it may become a nice starter airline card for occasional American Airlines travelers or those who travel with its partners.

If you spend a lot on groceries you should also consider applying for the American Airlines AAdvantage® MileUp® Credit Card and get double miles for every dollar spent. But take into account that you should have a good to excellent (670 - 799) credit score to apply for the MileUp credit card. All miles earned are collected on your American Airlines AAdvantage® account.

There are 4 ways of redemption for American Airlines AAdvantage® miles:

• Seat upgrades;
• Reward flights (to nearly 1,000 destinations worldwide);
• Car rentals, hotels, and vacations;
• Admirals Club® access.

Currently, each American Airlines mile is valued at around 1.5 - 1.77 cents per mile. You can’t convert your rewards straight to money. So, if the options are too limited for you - consider applying for a cashback credit card that allows you to spend your rewards on whatever you want.

Take a closer look at Chase Freedom Unlimited® Credit Card which has a lower variable APR of 20.49% - 29.24% (instead of 21.24% - 29.99% variable purchases and balance transfer APR for MileUp credit card), higher cash back on bonus categories (3% - 5%), and 1.5% cash back on every other purchase. You can get all these benefits with the same credit score requirements (670 - 799).

Who can benefit from getting the American Airlines AAdvantage® MileUp® Credit Card?

MileUp credit card offers 2 miles per $1 spent on groceries and eligible American Airlines purchases. But the foreign transaction fee of 3% will discourage international travelers. So, if you are an occasional American Airlines traveler who flies domestically and you don’t have a rewards credit card with increased cash back on groceries - American Airlines AAdvantage® MileUp® Credit Card might become a great starter rewards credit card, considering it doesn’t have an annual fee.

If you are flying internationally, even occasionally, there can be much better options with no foreign transaction fees. Also, American Airlines AAdvantage® MileUp® Credit Card is not the best choice if you are flying more than a few times a year. The amount of benefits is just insufficient. You won’t have priority check-in, priority boarding, or free checked baggage. At the same time, those perks come with an annual fee which is not an issue with American Airlines AAdvantage® MileUp® Credit Card.

Frequent American Airlines travelers should consider applying for an airline credit card with better benefits. Even though it will likely have an annual fee - the benefits will most probably exceed your annual fee payments. For example, another American Airlines credit card to consider is Citi AAdvantage Platinum Select World Elite Mastercard with an annual fee of $99 (after the $0 annual fee the first year) and benefits like preferred boarding, a free first checked bag (up to four persons traveling with you), a better sign-up offer, etc.

Are there any other benefits?

The amount of other benefits that the American Airlines AAdvantage® MileUp® Credit Card carries is not that big but there are still some worth mentioning:

• Save money during in-flight purchases with American Airlines. Save 25% on making purchases on your flights. For example, every drink or sandwich is going to be cheaper for you.
• 24/7 support service. American Airlines AAdvantage® MileUp® customer support is working 24/7 and is always there to help you with any concerning issue or question.
• No expiration of your miles. There is no expiration date for your miles. You can spend them whenever you want.
• No mileage limit. There is also no cap on the miles you can earn. Earn as many miles as you can.
• Apple Pay option. Link your MileUp credit card to Apple Pay and make transactions using your mobile device.
• Get 1 loyalty point per 1 mile. Loyalty points can help you reach AAdvantage® status which, in its turn, will let you have exclusive benefits like premium cabin upgrades, complimentary access to main cabin extra and preferred seats, and same-day standby priority.

Conclusion

Overall, American Airlines AAdvantage® MileUp® Credit Card can be a great starter rewards credit card for you. The card offers an acceptable APR rate of 21.24% - 29.99% and double miles on groceries and eligible American Airlines purchases - a rate you can benefit from even if you are an infrequent flier.

Your miles never expire, so you can earn miles for a year, for example, by making grocery and other purchases to get an award flight to nearly 1,000 destinations, upgrade your seat, rent a car or a hotel, etc. You won’t have to pay an annual fee which makes this card a good option for newbies that want to see how airline credit cards work.

You might consider applying for a different credit card if you travel internationally, frequently, or don’t travel at all. Otherwise, you can surely consider applying for the American Airlines AAdvantage® MileUp® Credit Card which might become your first step in the world of airline credit cards.