Cash back credit card offers can put significant dollars back in your pocket, but whether these cards are worthwhile for you will depend on the terms of the cards and how you manage your use of them.

Paying Off Monthly

Regardless of the terms of cash back credit card offers you receive, if you are not the type of credit card user who can pay off monthly balances in full, the card will not be worth it for you.

The typical credit card charges no interest if you pay your balance off each month. The cash back card returns to you a given percentage of the purchases you made. The interest on balances carried forward month to month will quickly outpace the cash back money you save.

Finding the Most Cash Back

The credit card business is very competitive now. Card issuers are seeking qualified buyers and almost always offer some kind of incentive to get you to try their card. Low or no percent interest for an introductory period is typical. Rewards programs where you earn points toward goods or services with each dollar spent are also common.

Cash back credit card offers return a determined percentage of your purchases, usually 1 to 2 percent, to you at a given time. Given the competitive nature of the business, don’t settle for less than the most cash back you can get. Finding 2% cash back credit card offers is common, and some issuers are even offering 3%, but there may be strings attached.

Finding the Right Terms

In addition to the cash back percentage, cards will vary as to how quickly you get the money back. Some pay monthly, some quarterly, some annually. Other cards will not begin paying cash back until you have charged a certain dollar amount.

Your personal financial situation will determine which terms make sense for you. If the cash back percentage is higher for annual payments and you can afford to wait, then that term will pay off.

Buying the Right Categories

Some cash back credit card offers include higher percentage cash back amounts for purchases in certain categories. By focusing your purchases in those categories on that card, the card becomes more valuable to you.

Be certain that categories in which you spend significant dollars aren’t excluded from the card. A card with 2% cash back in categories you use might be better for you than a 3% card with categories you don’t use frequently.

Avoid False Savings

The temptation with cash back credit cards is to spend more to make more. Don’t fall into this trap. Cash back credit card offers reward the disciplined credit card user. Just as it is important to charge only what you can pay off monthly, it is important to limit your credit card purchases to only what you would have bought anyway. Splurges quickly will wipe out 2% savings on other purchases.

Consolidate for More Savings

Some cash back credit card offers now include a higher cash back percentage if you consolidate your business with the credit card issuer. For example, some banks offer the higher cash back rate if you have both a credit card and a checking account with them.

Cash back credit card offers can certainly be worth it. The key is to pick the best card for you and be disciplined in your use of it and payment on it.