Accumulate American miles without an annual fee: A Review of the AAdvantage MileUp

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Overview of the American Airlines AAdvantage MileUp Card

The American Airlines AAdvantage® MileUp® card allows you to earn frequent flyer miles with no annual fee. It’s an excellent starter rewards card for occasional American Airlines travelers, though its limited perks and card protection features may lead you to explore other options. Card Rating*: ⭐⭐⭐

*Card rating reflects the views of TPG's editors and is not influenced by the card issuer.

When selecting your first travel rewards credit card, there are plenty of choices available.

The American Airlines AAdvantage MileUp is an entry-level card within the airline's cobranded card offerings, allowing you to earn AAdvantage miles with American Airlines.

A key consideration when choosing a cobranded airline credit card is how often you'll be flying with that airline. Are you flying enough to make the most of the card's benefits? Alternatively, would a card that offers straightforward cash back or a more versatile rewards system be a better fit? Additionally, consider if it's worth paying an annual fee.

To be eligible for the AAdvantage MileUp card, we recommend having a credit score of 670 or above.

Let's explore these questions regarding the MileUp card to determine if this no-annual-fee option suits your needs.

Information for the AAdvantage MileUp card has been independently gathered by Dinogo. The details on this page have not been verified or supplied by the card issuer.

Pros and cons of the AAdvantage MileUp card

Welcome offer for the AAdvantage MileUp card

New cardholders can earn 15,000 miles by spending $500 on purchases within the first three months of opening their account, valued at $240 according to TPG's September 2024 valuations.

Offering no annual fee and a low spending threshold, this deal is definitely appealing, though it doesn't top the list of most rewarding offers on American Airlines cards.

If you hold another AAdvantage card, you can still qualify for the bonus on the AAdvantage MileUp card; however, you won't be able to claim this bonus again if you've received a new account bonus for an AAdvantage MileUp account in the last 48 months.

This could be a great chance to accumulate more AA miles without an annual fee.

Benefits of the AAdvantage MileUp card

Although it lacks standout perks, the MileUp card offers some benefits that American Airlines travelers might find useful:

• 25% discount on inflight purchases: Enjoy savings on food and beverage purchases during flights (note that this does not apply to inflight Wi-Fi, managed by a third party).
• No mileage cap: Accumulate unlimited American miles, redeemable for flights, upgrades, car rentals, and hotel stays (flights offer the best value).
• Earn Loyalty Points: For every eligible mile earned through purchases, cardholders receive 1 Loyalty Point.

Regrettably, Citi has removed most of the travel and shopping protection benefits previously offered on many of their credit cards.

Furthermore, the MileUp card imposes a 3% foreign transaction fee, making it unsuitable for international travel. Consider opting for cards that do not charge foreign transaction fees instead.

Savings on inflight purchases can be a nice bonus if you find yourself needing a snack or meal. For example, a family of four taking two round-trip flights each year and buying a $10 sandwich on board in both directions would save $40 annually with the AAdvantage MileUp card. Not bad for a card that charges no annual fee.

How to earn miles with the AAdvantage MileUp card

Here’s what you can expect to earn on your purchases with the MileUp card:

• 2 miles for every dollar spent on eligible American Airlines purchases
• 2 miles for every dollar spent at grocery stores (including grocery delivery services)
• 1 mile for every dollar on all other purchases

Using the AAdvantage MileUp card for regular grocery purchases, as well as eligible American Airlines transactions, could be a smart strategy.

Keep in mind, though, that many credit cards offer attractive rewards rates for grocery spending. Similar to other issuers, Citi does not apply the grocery store bonus rate to discount stores and warehouse clubs.

How to redeem miles with the AAdvantage MileUp card

As a cobranded airline card, the miles you earn can only be redeemed for travel with American Airlines and its partners. You can also use your points on Oneworld and non-alliance partners like Etihad, Air Tahiti Nui, and Japan Airlines.

Additionally, you can use American miles for:

• Upgrading flights
• Admirals Club memberships
• Car rentals
• Hotel accommodations
• Donations to charities

That said, redemptions not related to flights typically offer a poor value.

Miles accrued through the MileUp card don’t expire as long as you either earn or redeem them within a 24-month period. This is beneficial if you have a significant trip planned in the future.

While we advise against hoarding points (as they can lose value), you can accumulate AAdvantage miles over the years and redeem them whenever you choose, provided you use the card occasionally.

What cards are alternatives to the AAdvantage MileUp card?

As previously mentioned, there are numerous entry-level rewards credit card options available. Within American Airlines' own Citi card lineup, there are several choices, in addition to a cobranded option with Barclays.

• If you seek more benefits: The Citi® / AAdvantage® Platinum Select® World Elite Mastercard® offers an introductory annual fee of $0 (then $99 annually). Benefits include your first checked bag free (for you and up to four travel companions on the same reservation), no foreign transaction fees, and a $125 flight discount after spending $20,000 in a cardmember year and renewing the card. For further details, check our full review of the Citi AAdvantage Platinum Select World Elite Mastercard.
• If you desire elite benefits with American Airlines: The Citi® / AAdvantage® Executive World Elite Mastercard® (see rates and fees) offers an Admirals Club membership, granting access to nearly 100 Admirals Club and partner lounges globally. Cardholders may bring up to two guests with a same-day boarding pass for American or its partners, plus enjoy priority check-in and boarding. Read our full review of the Citi / AAdvantage Executive World Elite Mastercard for more.
• If you prefer United: The United Gateway℠ Card is a no-annual-fee option for United travelers, featuring better rewards rates than many competitors for travel, gas, and transit purchases. This card offers 25% back on United inflight and United Club premium drink purchases, making it a solid choice for a no-annual-fee product. For more details, see our full review of the United Gateway Card.

For more options, explore our comprehensive lists of the best travel credit cards and best American Airlines cards.

The information regarding the Citi / AAdvantage Platinum Select has been independently gathered by Dinogo. The details on this page have not been reviewed or supplied by the card issuer.

Is the AAdvantage MileUp card a good choice?

The AAdvantage MileUp card may not suit your needs if you’re looking for benefits like a complimentary checked bag or priority boarding. However, if you can do without those extras and are focused on earning AAdvantage miles—especially if you live near an American Airlines hub—this card can be a solid entry-level rewards option.

Conclusion

If your goal is to quickly accumulate status and miles with American Airlines, the AAdvantage MileUp card could be an excellent starting point. Its lack of an annual fee is ideal for occasional travelers who may not fly frequently enough to warrant paying for a fee-based card. Additionally, it offers a good earning rate for grocery purchases and American Airlines transactions.

Nevertheless, if you fly with American Airlines several times a year or are in search of a card that provides richer perks or travel rewards, you might find better alternatives available.