Citi Announces New American Airlines No-Fee Card with 10K Miles Bonus

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On Wednesday, Citi and American Airlines announced a brand new co-branded credit card with no annual fee. The AAdvantage MileUp credit card will get you 10,000 AAdvantage miles and a $50 statement credit after spending $500 in the first three months of card membership. Applications for the card will open July 22.

Cardholders can also earn 2x points on American Airlines purchases and at grocery stores, as well as 1x points on all other purchases.

 

What Benefits does the AAdvantage MileUp Card Offer?

  • 10,000 bonus miles & a $50 statement credit after spending $500 on the card within the first three months
  • No annual fee
  • 2 miles per dollar spent on purchases made directly with American Airlines
  • 2 miles per dollar spent on purchases at grocery stores
  • 1 mile per dollar spent on all other eligible purchases

 

Our Analysis

Airlines and banks clearly realize there are travelers out there who want a travel rewards card but don’t want to pay an annual fee. The AAdvantage MileUp card is just the latest. The benefits are nearly identical to the Blue Delta SkyMiles Credit Card from American Express. Both cards offer 10,000 miles with their respective airlines.

Meanwhile, Chase and United have the United TravelBank card as a no-fee option. Rather than award points, cardholders can get $150 in statement credits toward United flights after spending $1,000 in 3 months.

To be clear, 10,000 miles won’t get you very far. In some cases, that’s not even enough for a one-way domestic flight. And like the Delta card, the MileUp card doesn’t come with perks like free baggage or priority boarding like other co-branded airline cards do.

Between those benefits and far larger mileage bonuses, we generally find cards with an annual fee are worth the upfront cost, especially cards where the $95 annual fee is waived in the first year. That makes cards like the Citi AAdvantage Platinum Select World Elite Mastercard a far more compelling option. The Platinum Select card is currently offering up to 70,000 miles as a welcome offer. To learn more about this, head offer to our Top Credit Cards page.

Adding up those different perks is why we urge readers not to rule out even top-of-the-line travel rewards cards with hefty annual fees. Whichever card you choose, make sure you’re earning miles with an airline that you can easily fly. And in our minds, AAdvantage miles are some of the best frequent flyer miles to collect.

AA offers great rates on domestic flights, trips to Europe and has some incredible redemptions on partner airlines. Read our guide on four ways to spend a big AAdvantage miles bonusJust know that this new, no-fee card option won’t get you very far.

 

Bottom Line

Banks and airlines are putting out more and more of these no-fee cards. They may be alluring to beginners who are scared off by annual fees, but the value they deliver pales in comparison to even cards with a $95 fee that are waived in the first year. This card is no exception. The card launches on July 22nd and we will provide an update once it goes live. 

 

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2 Responses

  1. Kelsey says:

    Is the $50 statement credit on AA purchases a one-time or annual benefit? I see value if annual to account for 1 roundtrip w/ no baggage fees. Thanks!

    • Nick Serati says:

      The $50 credit is a one time benefit after spending $500 on the card within the first 3 months. It is not an annual benefit.

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