Cash back credit cards give you the ability to earn money back on the money you spend by refunding a percentage of the amount you spend or by awarding rewards points. They only matter if you pay off your balance in full each month and never go over your limit. Otherwise, you will pay more in interest than in return.
Is cashback free? You have to spend money to make money, so it's not really free money.
Credit card companies that run cash back programs do so to entice people to use their credit cards. The money you can earn as cashback is only a portion of the merchant fees charged by your card provider.
Cash back credit cards are worth it and can help you save money if you pay down your balance every month. It's also worth noting that the best cash back credit cards with the highest rewards rates and sign-up rewards sometimes have annual fees.
Another benefit of cash back cards is that they often have low or no annual fees.
So it usually doesn't take long to break even with a cashback card, depending on how you use it. Cash back cards also tend to be easier to use.
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