The
American Airlines AAdvantage® MileUp® card is a good credit card to consider if your credit score is
700 or higher, you want to earn airline miles without paying an annual fee, and you plan to use the card for airfare and groceries. The offer starts with a nice initial bonus, worth
$228 according to WalletHub’s research. That is pretty good, as are the 2 miles per $1 spent that cardholders earn on purchases made directly with American Airlines and at grocery stores (including grocery-delivery services).
However, these rewards don’t separate AAdvantage MileUp from the fleet of flight- and food-related rewards cards available right now. Aside from its
$0 annual fee, the MileUp Card’s rates and fees don’t provide much reason for excitement, either, at least not in a good way. For one thing, its regular APR can be higher than average for a credit card that requires good credit for approval. It also has a
3% foreign transaction fee, which is unusual for a travel rewards card.
Below, you can learn more about why the MileUp Card is neither the
best American Airlines credit card nor one of the
best travel credit cards overall. You can also see how it could still be helpful in the right situation.
What I Like About the AAdvantage MileUp Card
$0 annual fee
This saves cardholders roughly
$27.85 per year compared to the average credit card. AAdvantage MileUp is far from the only travel rewards card with no annual fee, though.
Decent Initial Bonus
Spending
$500 within
3 months of opening an account gets you
15,000 miles, worth around
$228 on average, according to our calculations. In other words, you can get about 40% back.
For comparison, the average rewards card with points or miles gives
35,124 points/miles as an initial bonus, worth about
$236.
Solid American Airlines rewards
The MileUp Card gives you 2 miles per $1 spent on American Airlines purchases. This works out to an average of about 2.98% back when you redeem your AAdvantage miles for American Airlines flights.
Valuable Grocery Store rewards
The MileUp Card also rewards you with 2 miles per $1 spent. This earning rate applies not only to purchases at grocery stores, but also to money spent with delivery services that bring groceries from those stores to your door.
25% in-flight discount
Cardholders enjoy 25% back on food and beverage purchases on American Airlines flights. This benefit is standard on American Airlines credit cards.
Top 5 rewards program
AAdvantage ranks
5th out of the 10 largest frequent flyer programs in terms of value and perks, according to WalletHub’s annual study. You can use our
frequent flyer miles calculator to find the best airline rewards program for your needs.
Base Rewards Rate
You will get 1 mile per $1 spent when you make most purchases with this card. The average rewards card with points or miles gives
1.2 points/miles per $1 spent.
Even though an earning rate this low is to be expected, it’s still disappointing. You can earn more on everyday purchases with the
best cash back credit cards, including several with no annual fee.
What I Don’t Like About the AAdvantage MileUp Card
No free checked bags
Many airline credit cards offer at least one free checked back to cardholders on eligible flights – but not the MileUp Card.
3% foreign fee
This fee applies to purchases processed outside the United States, and it puts the AAdvantage MileUp Card at a disadvantage. Most travel rewards credit cards have no foreign transaction fee. Sure, it is called American Airlines, but they do have international routes, so this is relevant.
High APR
The MileUp Card’s interest rate is
19.49% to 29.49% (V), depending on your overall creditworthiness when you apply. Paying interest at this rate would result in the card not being worthwhile, so you need to pay the bill in full monthly for the card to pay off. Paying your full statement balance by the due date every month prevents interest charges from accruing.
Good credit needed
Based on our research, you need a credit score of
700 or higher to have good odds of being approved for the American Airlines MileUp Card. You can
check your credit score for free on WalletHub to get a sense of your chances.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
