American Airlines AAdvantage MileUp Card Review

This basic airline card, issued by Citibank, is best for non-commital fans of American Airlines who have excellent credit and are looking to ease into a frequent flyer program. There’s no annual fee, and you don’t have to spend much to get the modest sign-up bonus. The card rewards even the occasional traveler, since charging your groceries earns you just as many miles as flying. Just don’t expect the travel perks you’ll get with most airline cards. If you want those, consider an alternative like the Citi AAdvantage Platinum Select World Elite Mastercard. 

Pros Explained

• Rewards for groceries: Most airline cards don’t reward your supermarket runs, and this one pays double miles on them. While there are cards on the market that offer bigger payouts for groceries, this gives people a way to earn pretty valuable miles on a routine expense. 
• Very valuable miles: AAdvantage miles are the most valuable miles offered by a major U.S. airline card, according to our analysis. When redeemed for flights, our research shows they’re worth an average 2.04 cents.
• No annual fee: Only a few of the more basic airline cards don’t charge an annual fee, and this is one of them. Cards with a fee can put pressure on you to recoup the cost with rewards or benefits, so this is an especially nice feature for those new to frequent flyer programs or even to credit card rewards in general. 

Cons Explained

• Small new cardholder bonus: A bonus of just 10,000 miles isn’t enough for most one-way award flights, even with the high value of each mile. (More on this below.) If you’re willing to pay a moderate annual fee, you can get another American Airlines card with a far better incentive for new cardholders.
• Foreign transaction fee: There are many credit cards—even non-travel cards—that don’t charge you for making a purchase in a foreign currency, so the 3% fee on this card is a real drawback. If you want to travel overseas, you’ll want another card in your wallet. 
• May require excellent credit: This may be harder to get than many entry-level cards. If you have excellent credit, you’re probably eligible for a travel card with far better rewards and benefits. 
• Few travel benefits: An airline card with no annual fee doesn’t typically provide many travel perks, and this is no exception. If you want free checked bags or preferred boarding, choose a higher-tier card. 

Bonus for New Cardholders

If you spend $500 within three months of opening this card, you’ll receive 10,000 miles and a $50 statement credit. Competing cards with no annual fee offer similar bonuses, though the miles you earn with this card are worth more. At an average 2.04 cents apiece, the miles alone are worth $204 when redeemed for flights, based on our calculations.

To get more value right out of the gate, you may be better off with a higher-tier American Airlines card—as long as you can swing the bigger spending requirement and annual fee. 

Earning Points & Rewards

You’ll earn 2 miles per $1 spent on eligible purchases with American as well as groceries. The double miles on flight purchases are pretty standard for an airline card, but the rewards on your supermarket shopping are not nearly as common, especially among no-annual-fee cards. Other purchases earn the baseline 1 point per $1 spent. 

There’s no limit on the number of miles you or authorized users can earn with this card, according to a Citi spokesperson. Miles don’t expire as long as you earn or redeem them at least once every 18 months.

As long as you book through American, you’ll also earn double miles on flights with more than 20 partner airlines, including Hawaiian Airlines, British Airways, and many other international carriers.

Redeeming Rewards

Our research revealed AAdvantage miles are most valuable when used for flights, rather than to book hotel stays or to buy gift cards or merchandise. Each mile is worth an average 2.04 cents, just slightly more than the 1.98 cents you can get from United Airlines frequent flyer miles, and much more than the 1.44 cents you can get from Delta Air Lines miles, according to our valuations. 

Miles can be redeemed for a fare on American as well as airlines in the oneworld alliance and other partners, all by booking through the AAdvantage portal or American Airlines mobile app. To get more out of your miles, look for flights labeled "web specials" when you book. Those ticket prices are often priced lower than the rates you'll see in American Airlines' published award chart.

While they’re not always the best bang for your buck, miles can also be redeemed for: 

• Rental cars and hotel stays
• Vacation packages
• Gift cards
• Ticket upgrades

Miles cannot be redeemed for cash, statement credits, checks, or direct deposit, according to an American Airlines spokesperson.

How to Get the Most Out of This Card

If you’re weighing this card as you wade into the world of frequent-flyer programs, chances are it’s an experiment. Maybe you’re saving up for your first big trip or just started to travel on occasion for your freelance job, and you want to dabble in the game without paying an annual fee. If so, make sure to charge $500 in the first three months to earn the bonus. (This shouldn’t be a problem if you spend at least $42 on groceries each week.) 

Even after that, remember to use this card every time you’re at the supermarket so you can rack up enough to have options on your first award flight. Watch the AAdvantage program website for opportunities to earn bonus miles on vacation, dining or online shopping purchases, too. Maybe you’ll shop around for the best web special deals or save your miles for a pricier international flight. If it’s the latter, just make sure to bring another card with you to avoid the 3% foreign transaction fee. 

Other Features

Unlike mid-tier airline cards, you won’t get any special boarding privileges or a waiver on checked bag fees with this card. There is one perk worth mentioning:  

• Discounts on in-flight purchases with American

Customer Experience

J.D. Power ranked Citibank sixth out of 11 national card issuers and gave Citi a below average score in its 2020 U.S. Credit Card Satisfaction Study.

Cardholders get online access to their FICO credit score for free and can manage their account and rewards with Citi’s mobile app and the AAdvantage app.

Security Features 

Like most card issuers, Citi will notify you of suspicious account activity by text, email, or phone to keep you in the loop. If your card is lost or stolen, Citi also offers a mobile app feature that lets you instantly lock the card to avoid potential fraud. The feature conveniently allows recurring transactions to proceed uninterrupted until the matter is resolved. 

Fees 

Besides the 3% foreign transaction fee, the penalty and transaction fees are fairly typical for a travel card. Don’t use this card abroad and you can easily avoid racking up extra fees.