The Citi AAdvantage Business credit card is a good option for business owners who want to earn flights by making everyday purchases but do not want to spend hundreds of dollars per year on fees. It’s easily worthwhile the first year, when there’s no membership fee, and its rewards can justify the cost after that. Cardholders also enjoy benefits such as the first checked bag free, preferred boarding and discounted in-flight Wi-Fi.
What I Like About the Citi AAdvantage Business Card
Good bonus
The Citi AAdvantage Business World Elite Mastercard is offering
65,000 miles to new cardholders who spend at least
$4,000 in the first
4 months after opening an account. That’s worth about
$988 in American Airlines airfare, based on WalletHub’s research into the average redemption value of AAdvantage miles.
In other words, this bonus saves you enough on airfare to cover the cost of owning the card for several years.
Competitive ongoing rewards
You will earn 2 miles per $1 spent on American Airlines airfare, telecommunications services, car rentals and gas with this American Airlines business credit card. All other purchases will yield just 1 mile per $1 spent. Those earning rates equate to 1.52% to 3.04% back, while the average cash rewards card gives you
1.18% back, according to WalletHub research.
Free checked bags and early boarding
These are fairly standard features for an airline credit card, but the fact that you and up to four travel companions each get a free checked bag on domestic American Airlines flights will certainly end up saving you some money. Checking a bag normally costs $50 to $55.
Preferred boarding isn’t as valuable, but some cardholders may appreciate the ability to get situated before other passengers. And if you want to work during the flight, you’ll like the discount that cardholders get on Wi-Fi purchases.
$0 intro annual fee the first year
Combined with the initial rewards bonus, this membership fee waiver makes your first year as a cardholder especially worthwhile.
No foreign transaction fees
You won’t have to pay extra if you use this card while traveling abroad or buying something online from a merchant based in another country. This will save you 3% compared to most cards. Plus, you’ll automatically get a good exchange rate.
What I Don’t Like About the Citi AAdvantage Business Card
$99 annual fee, starting year two
The Citi AAdvantage Business Card’s standard
$99 annual fee is nearly four times higher than what the average credit card charges (
$28.25), according to WalletHub’s database of 1,500+ credit card offers. This underscores the value of that first-year fee waiver, along with just how much you need to get from the rewards and benefits each year after that.
Excellent credit required
You need excellent personal credit to get approved for this card, so make sure to
check your credit score for free on WalletHub before submitting an application.
Credit card companies care more about small business owners’ personal credit standing than that of their companies because personal credit histories tend to be longer and more representative. Card issuers also hold small business owners
personally liable for unpaid balances.
Not a good option for carrying a balance
This card does not offer 0% intro rates, and most business credit cards are bad for financing given that issuers can increase the interest rate on a balance at any time. You should plan to pay the monthly bills in full if you decide to apply.
Bottom Line: Is It Worth Applying?
It is worth applying for this card if you have a high enough credit score and you can comfortably spend enough to qualify for the initial bonus – worth
$988 in American Airlines airfare, per our calculations. The ongoing rewards and perks can cover the cost of the annual fee when it kicks in, but it’s a lot easier to get your money’s worth with the bonus in your back pocket.
It’s also worth noting that the Citi AAdvantage Business Card has some tough competition, especially if you’re not committed to American Airlines. There are lots of really good
business miles credit cards available right now.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
