Many people love getting cash back offers because it means you are getting paid to shop. You simply make purchases with your credit card and get back a certain percentage of the spending. This makes this type of card irresistible to the consumers. Generally you can get anywhere from 1% - 3% as cash back. It may not seem much but many are not bothered as it is free.
This is a promotional tactic used by credit card companies to increase their customer base and to motivate them to spend more with their credit cards. Higher spenders will get slightly more than those who spend less. But remember, the actual amount you get for each transaction can be restricted by an upper limit. This has been designed to prohibit people from spending without a second thought just to get the money back.
Simply because the credit card company gives you cash back or want to increase the number of their customers does not mean they will approve every application for the card. Like any other type of credit, they will first check your credit rating. Hence it is important that you find out if you are eligible for the card before submitting your application. Or else you may waste time applying for a card for which you are completely ineligible.
Before using the card for the first time, go through the terms ad conditions of the agreement. Find out if there are any hidden traps or limits. Check out the repayment rates for the credit you have used.
Do not select a credit card only for the cash back. If their rate of interest is high, they can recover the money they have paid you, and you will not derive any real benefit.
But if you find real value in going for the cash back credit card, then go ahead and apply. But first go through all the choices in the market open to you to get the best deal for yourself.