American AAdvantage MileUp Card Review: No Annual Fee

American AAdvantage MileUp Card Review: No Annual Fee

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Link: Apply now for the American Airlines AAdvantage® MileUp®

The American Airlines AAdvantage® MileUp® is issued by Citi, and it’s the best no annual fee co-branded American Airlines credit card.

While there are lots of airline credit cards out there, historically we haven’t seen many no annual fee airline credit cards. That’s a trend that has changed in recent years, as card issuers try to create products for a wider consumer base.

In this post I wanted to take a closer look at the AAdvantage MileUp Card — it’s a card that some might want to apply for outright, and for others it may be a card that’s worth downgrading to, in order to save money on annual fees. It could also be appealing if you’re looking to spend your way toward elite status, given American Airlines’ Loyalty Points system.

Let’s talk about why you should consider this card. What are the sign-up bonus and rewards structure like, and how does this card compare to other American Airlines credit cards?

American AAdvantage MileUp Card Basics For March 2024

Generally speaking, I don’t recommend putting your everyday spending on an airline credit card, because I tend to think you’re better off instead going with a card earning transferrable points or cash back. That being said, nowadays credit card spending can earn you American Airlines elite status, so some might consider this to be worthwhile.

Furthermore, it can often make sense to have an airline credit card for the perks it offers. How does the AAdvantage MileUp Card fit into the equation — can you get big perks with no annual fee, or is this card simply not worth it?

Sign-Up Bonus: 10K AAdvantage Miles + $50 Statement Credit

The AAdvantage MileUp Card offers a sign-up bonus of 10,000 American AAdvantage miles plus a $50 statement credit after making $500 in purchases within the first three months from account opening. While that’s not a huge bonus, it’s pretty good for a no annual fee card, and the spending requirement is reasonable.

Note that you’re not eligible for the bonus on this card if you have received a welcome bonus on this exact card in the past 48 months (however, having had another AAdvantage card doesn’t preclude you from getting this bonus).

Since this is a Citi card, there are some other rules to be aware of, like that you can apply for at most one Citi card every eight days, and at most two Citi cards every 65 days.

Redeem AAdvantage miles for travel in Etihad business class

No Annual Fee

As mentioned above, the AAdvantage MileUp Card has no annual fee. Not only is the card free for the primary cardmember, but you can also add authorized users at no extra cost.

There are a couple of other things that make the no annual fee status of this card worthwhile:

Earn 1-2x AAdvantage Miles Per Dollar Spent

The AAdvantage MileUp Card offers the following return on spending:

  • 2x AAdvantage miles per dollar spent on eligible American Airlines purchases
  • 2x AAdvantage miles per dollar spent on grocery store purchases
  • 1x AAdvantage miles on all other purchases
Earn 2x AAdvantage miles on grocery store purchases

It’s noteworthy that this no annual fee card offers a better return on grocery store spending than virtually any other American Airlines credit card. There’s no cap to how many miles you can earn through spending on this card. Do note that the card has foreign transaction fees, though, so you’ll ideally only want to use it for purchases within the United States.

Earn AAdvantage Loyalty Points For Spending

In addition to the general rewards structure on the AAdvantage MileUp Card, the most compelling reason to spend money on the card is in order to earn elite status with American Airlines. Nowadays American Airlines uses the Loyalty Points system for status qualification, and credit card spending can help you earn status.

American’s elite requirements are as follows, and you earn one Loyalty Point for every dollar spent on an American Airlines credit card:

In other words, spending $200,000 on the card would earn you Executive Platinum status.

Earn elite status with credit card spending

25% Inflight Savings On American Airlines

The AAdvantage MileUp Card offers 25% savings on food and beverage purchases on American Airlines flights when you pay with your card. Being able to save money for purchases you’d make anyway on American Airlines is pretty awesome.

Save on inflight American Airlines purchases with the card

Is The AAdvantage MileUp Card Worth It?

The AAdvantage MileUp Card is unique in that it has no annual fee and offers some potentially useful perks. Getting 25% back on inflight purchases, a solid sign-up bonus, and 2x miles on grocery store purchases, is pretty good. On top of that, this is the best no annual fee card that can help you earn elite status with American Airlines.

However, in general, I’d note that:

  • Airline credit cards are most worth having for the perks they offer, rather than the points you can earn through everyday spending, and you’ll generally find the most perks with premium airline credit cards
  • If you don’t want to directly apply for the AAdvantage MileUp Card, I do think it’s a great downgrade option from a card like the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® (review)
  • It could be worth getting this card if you want a no annual fee card that you can keep long term to help build your credit, or if you want the lowest annual fee card that can help you earn AAdvantage elite status

Are No Annual Fee Airline Cards Worth It?

It depends on how you look at it. There’s little downside to having a no annual fee card for the modest welcome bonus, the 25% savings on inflight purchases, etc.

However, in general, it just doesn’t make sense to use an airline credit card that awards only one mile per dollar spent on a bulk of purchases. I value American miles at 1.5 cents each, so you’re much better off using another card, in my opinion.

On the most basic level, a vast majority of people would be better off with something like the no annual fee Citi Double Cash® Card (review), which offers 1x ThankYou points when you make a purchase, and 1x ThankYou points when you pay for that purchase.

Assuming you value American miles at less than two cents each for everyday spending, and aren’t going for elite status, then a card like that would be a no brainer.

Which American Airlines Credit Card Is Best?

While it’s nice to have a no annual fee AAdvantage credit card option, I do think American’s premium credit cards are potentially worth paying annual fees on. Both the personal and business Citi AAdvantage Platinum cards offer generous welcome bonuses, with the first year annual fee waived. The details are as follows:

Some AAdvantage credit cards offer preferred boarding

Since I value American miles at 1.5 cents each, I value those bonuses at $750-975, so that will cover a lot of annual fees.

Personally, my favorite American Airlines credit card is the Citi® / AAdvantage® Executive World Elite Mastercard® (review), given the incredible Admirals Club access perk that it provides.

Access Admirals Clubs with the Citi AAdvantage Executive Card

These cards also offer perks that make them worth holding on to long term, including:

  • Preferred boarding on domestic American flights
  • First checked bag free on domestic itineraries for you and up to four companions on the same reservation

Spending on all of these cards can help you earn AAdvantage elite status.

Bottom Line

The AAdvantage MileUp Card is a great option for those who want an American Airlines credit card without paying an annual fee. The card has some valuable perks, like double miles at grocery stores, the ability to earn elite status with spending, and savings on inflight purchases.

Personally, if I were to recommend an American Airlines credit card, it would be the Citi AAdvantage Executive Card. While the card has a $595 annual fee, it offers an Admirals Club membership for the primary cardmember.

If I were to get a Citi no annual fee card I’d recommend the Citi Double Cash Card, which is one of my go-to cards for everyday spending.

If you want to learn more about the American AAdvantage MileUp Card or apply, follow this link.

Conversations (8)
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  1. Salty B. Guest

    I downgraded from the Platinum card a long time ago, well before the LP scheme began. I also have the Barclays no-fee equivalent, but do not use use it anymore.

    In terms of earning AA Loyalty Points, there's really no better option. All of them get you 1LP per $, and this one gives you two LP per $ at any grocery store. Maybe the Plat card gives you two for other purchases like fuel,...

    I downgraded from the Platinum card a long time ago, well before the LP scheme began. I also have the Barclays no-fee equivalent, but do not use use it anymore.

    In terms of earning AA Loyalty Points, there's really no better option. All of them get you 1LP per $, and this one gives you two LP per $ at any grocery store. Maybe the Plat card gives you two for other purchases like fuel, but I only fill up about once a month due to heavy travel and a short commute when I'm home. I made EXP last year with travel, sure, but I put ALL of my spend on this card which made the difference between Platinum Pro and EXP.

    On NONE of these cards will the bonus miles count as LPs. Just be aware of that, and that any miles defined as "bonus" also do not count as LPs.

    1. Ryan Guest

      It does not give you 2 LPs at grocery stores. It gives you 2 miles, but only 1 LP per dollar.

  2. barnchat Guest

    I do not see any comment on the American Aviator card issued by Barclays. Is this article limited to Citibank offerings only, or are you implying that the Barclays card is not competitive?

  3. Briggs Guest

    By downgrading my Citi Platinum select card to the Mileup card, is it safe to assume that I will not receive the 10K AA mile bonus offer? Hoping my assumption is wrong. If no bonus, I might just so a separate direct application. Advice appreciated.

  4. Anthony Diamond

    A few comments

    1) No matter what the spend category, there are cards where you earn meaningfully more than any Citi AA card. You say that it doesn't make sense to but general spending on a Mileup card. Well, it doesn't make sense to put American Airlines spending on any AA card (Amex Platinum offers 5x), doesn't make sense to put restaurant spending on the Platinum (Citi Prestige offers 5x, Amex Gold offers 4x, Chase...

    A few comments

    1) No matter what the spend category, there are cards where you earn meaningfully more than any Citi AA card. You say that it doesn't make sense to but general spending on a Mileup card. Well, it doesn't make sense to put American Airlines spending on any AA card (Amex Platinum offers 5x), doesn't make sense to put restaurant spending on the Platinum (Citi Prestige offers 5x, Amex Gold offers 4x, Chase Sapphire offers 3x), it doesn't make sense to put grocery spending on this card (Amex Gold offers 4x). Unless...

    2) Your primary goal is to spend to earn AA status and miles. If so, I would argue the lowest opportunity cost may be putting general spending at 1x on this card (or any Citi AA card). If I were trying to earn AA status, I would spend on general purchases first, because the opportunity cost is greater on airfare, dining, etc. You lose 2 transferrable points by putting grocery spend on this Citi Mileup card, you only lose 1 transferrable point by putting general spending on a Mileup Card

    3) I have the Citi AA Executive card - AA domestic lounges simply aren't worth the fee for me. I'm downgrading that card to this card. I already have this card too, so I probably will have multiple versions of the Mileup. This is an excellent card for those that want to spend some to maintain AA status but don't want to pay a fee. It. may be their best card.

    1. D3kingg Guest

      @Anthony

      It is a good card to downgrade to.

      I also do my grocery shopping online and pickup curbside using the eshopping portal which is 2X and count a LPs. I just realized I might be getting 4X on groceries with the mile up card I need to check my statements.

      As far as citi platinum executive goes I don’t think I need the signup bonus. If I were to buy 6 $59 day passes in a year that is about $340. Less than the club member ship.

  5. david Guest

    Lucky: Does the 10,000 mile bonus count as loyalty points?

    1. Tahsin Guest

      No Lucky, but I recently got this card and no the sign up bonus does not count towards LPs.

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Tahsin Guest

No Lucky, but I recently got this card and no the sign up bonus does not count towards LPs.

1
Ryan Guest

It does not give you 2 LPs at grocery stores. It gives you 2 miles, but only 1 LP per dollar.

0
Salty B. Guest

I downgraded from the Platinum card a long time ago, well before the LP scheme began. I also have the Barclays no-fee equivalent, but do not use use it anymore. In terms of earning AA Loyalty Points, there's really no better option. All of them get you 1LP per $, and this one gives you two LP per $ at any grocery store. Maybe the Plat card gives you two for other purchases like fuel, but I only fill up about once a month due to heavy travel and a short commute when I'm home. I made EXP last year with travel, sure, but I put ALL of my spend on this card which made the difference between Platinum Pro and EXP. On NONE of these cards will the bonus miles count as LPs. Just be aware of that, and that any miles defined as "bonus" also do not count as LPs.

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