Are cash back cards worth it?

When you are thinking of applying for a credit card, all factors need to be taken into account, especially if you pay any fees for this card. With cash back cards, it's pretty simple - yes, in most cases they are worth it. Cash back cards give you plain and easy to use rewards that you can redeem on your purchases. So, basically you buy something and then erase its cost with your cash back.

If your card has got fees and you tend to carry a balance, first calculate your overall spendings. See how much cash back you will earn with your average spendings with this card and then deduct the fees and interest. If your earnings are more than spendings, then this card is worth applying for.

Note that there are cash back cards that have no annual fee at all and offer a 0% intro APR promotional period, so you won't even face any interest payments within this period. Such card is virtually free for you. Don't forget that when the introductory interest rate is over, the ongoing APR will apply.