You also get 3% on gas, 3% on some department stores, and 1% everywhere else. Depending on your spending habits, it should be very easy to meet the AF.

I use my card for groceries, gas (although less than 200/yr), and department stores ONLY. I haven't had a problem tripling the AF each year. My groceries average 250/mo, with a max of 350.

Is there no sign up bonus anymore? When I applied in Jan 2012 I was given $150 cash back, so I essentially had no annual fee for two years.