You need to spend $16,666 just to cover the $500 annual fee. That’s a lot for many people especially when many low end retailers don’t accept AmEx. As already state rewards cards are a subsidy for the rich, or at least for people who spend a lot.

Yeah $500/yr fee is ridiculous. I think my card is 1/4 of that and I’m sure I break even the first month since almost everything I pay for goes through that card. Utilities, cell phone bills, after school program fees (and before that daycare), all other recurring bills besides mortgage/car, restaurants, groceries, anything else I want or need to buy go through the same card. Always pay the balance in full each month no matter how painful.

Often the $500/year cards have near immediate rewards that cover the cost - if you use those rewards. For example, the CapOne X gives a $400 travel credit every year.

CSR is also $550 with a $300 travel credit that is not difficult to immediately redeem.

Consider the following...

If you conceptualize it as "Annual fee minus reward credits" it's far more reasonable than that. For example, Amex Platinum is $695/year, but the Walmart+ and Digital Entertainment credits are $395 combined. Compared to the next highest card in Amex's line - Gold @ $250 - this makes more sense that you might originally think.

There are no 3% cards (not even 2.5% CB cards, I believe) without some kind of “requirement”. The only 3% card in your linked list clearly requires $100k in assets tied up with that FCU. For now that MM interest rates aren’t total shit that might be ok, but it is something that must be considered.

2% is about the most you’re going to get “no strings”.

fair, I do the 2.5% (no international fees) and that does require keeping a $1k balance too... but that's doable. Although of course the value proposition of that has changed a bit now that CDs are paying >5%, too. But the extra 1% or so (on $10k/mo of transactions or whatever) does add up enough to make it more than worth it still, imo.