Compare the Features and Benefits of American Airlines AAdvantage® MileUp® and
Bank of America® Premium Rewards® credit card

For occasional travelers that fly American Airlines and are looking to earn miles with the airline, then the AAdvantage® MileUp card could be a solid option.

And while you might not think about this card if you are already an American Airlines elite traveler, you may find the bonus categories more beneficial than the $99 fee Citi® / AAdvantage® Platinum Select® World Elite MasterCard since you already have the additional benefits like free checked bags and priority boarding via your status.

This beginner-friendly card, with no annual fee, is ideal for those who don’t travel often enough to justify a more expensive, premium card.

The AAdvantage® MileUp also has a competitive 2X bonus category rate at grocery stores (including grocery delivery services) and eligible American Airlines purchases.

And remember, all base miles earned via spend on this card count as Loyalty Points towards AAdvantage® status.

In addition, you’ll get 25% off inflight food and beverage purchases and there’s no mileage cap on the card. American Airlines miles can be used on over 1,000 worldwide destinations, as you can use them for American Airlines, American Eagle and any Oneworld alliance or non-alliance partner airlines.

However, there are some significant downsides to consider as well. While this is an airline-specific card, the MileUp card doesn’t include many airline perks, such as a free checked bag perk or preferred boarding. In addition, there’s a relatively modest welcome bonus and the card charges a foreign transaction fee (so you won’t want to use this card abroad).

And if you do fly American Airlines (and Oneworld partner airlines or JetBlue) more than a couple of times per year, but are not elite already, there are some better options out there, including those from American Airlines. That includes the mid-tier Citi® / AAdvantage® Platinum Select® World Elite Mastercard, offering the first checked bag free, and the premium Citi® / AAdvantage® Executive World Elite Mastercard, offering Admirals Club lounge access.

The market for premium travel rewards cards is crowded, and every major card issuer has a product with an annual fee of $95, or close to it. While not a creative name for a card in this class, the Bank of America® Premium Rewards® credit card appeals to those who want the cardholder benefits of premium card, but are happy to earn cash back rewards instead points that can be transferred to frequent flier miles or points with hotel programs.

This card earns double points on all travel and dining purchases, and 1.5 points per dollar spent everywhere else. But rather than being just travel rewards points, these points can be redeemed for one cent each as statement credits, bank deposits, gift cards or travel reservations.

So far, this is pretty similar to the no-fee Bank of America Travel Rewards card. But what makes this card “premium” are its benefits.

To start off with, you receive up to a $100 credit towards the application fees of TSA PreCheck or Global Entry, which includes PreCheck. These services are used by frequent travelers to speed themselves through the lines at the airport.

You also receive up to a $100 credit towards airline incidental fees. These are the charges for things like luggage or seat selection that everyone hates, and those who use this fee each year will completely offset this card’s $95 annual fee.

It also includes an entire range of travel insurance policies such as trip delay reimbursement, trip cancellation and interruption coverage, and lost or delayed baggage reimbursement. It even comes with emergency evacuation insurance, a feature only found on a fraction of the top credit cards with annual fees over $500.

Purchase protection and extended warranty coverage are also included.

In the end, you have a card that offers a fairly simple cash back rewards program, similar to what you would find on a no fee card. But at the same time, it has all the fee credits, travel insurance and purchase protection features you’d expect to find on a much more expensive credit card.

Anyone who travels regularly, even if not frequently, will find these benefits to be worth its modest annual fee.