When it comes to cash back credit card deals, the idea of getting something for nothing is what attracts people to these products. This article aims to assess whether this is the truth or whether you might be better off getting a better deal for your money elsewhere. Some of the credit cards products on the market offer cash back, which means that you receive a certain amount of money each year for using the card, but when you look into the returns you receive compared to the money you spend, is it really worth investing in one of these cards over other card types such as the reward scheme credit cards?

The way in which cash back credit cards work means that the amount of money you receive as 'cash back' is a percentage of how much you have spent on the card, usually between 0.5 and 4%. The cash back you earn is then given to you either as a cheque or is debited to your credit card account annually. The essential premise is that the more money you spend on your credit card the more you receive. It can be a good strategy, particularly if you use your credit card carefully - for example, the prospect of earning money simply paying for your normal groceries is quite appealing, as long as your interest payments don't outweigh the cash you earn.

Like any other financial product on the market, cash back credit cards want to draw in new customers, so you will find there is often an enticing introductory period which offers you a higher percentage rate of return on goods bought. Usually this is for the first three months, but the percentage can vary from card to card with companies wanting to keep their product as competitive as possible within the market. For example the Capital One Bank Cashback card is currently offering an outstanding introductory rate of 4%, for the first 3 months, which then drops to the standard rate of 1%. This sounds like a great deal until you compare the figures with, for example, the Barclaycard platinum card which offers 2% cashback on supermarket and petrol every month, which may prove to be the most rewarding card in the end depending on what goods you tend to buy with your credit cards.

Cash back credit cards offer anything from 0.1% to 4% back on card purchases with offers such as 5% cash back on Amex cards over the introductory year and Capital One with 4% cash back on the first 3 months and 1% after the initial period - these seem like tempting offers. Basic cash back is not the only benefit you can get from these types of cards however, so it is always worth looking around card comparison sites such as motleyfool.com to see how products such as the Virgin card which offers money off holidays and related products might suit you better.

As with all credit card products it is advisable to invest in card protection, so that should you lose your job or become ill and are suddenly unable to make repayments you won't have to pay extortionate late fees and charges. Covering you in the event of identity fraud online in cases such as Capital One card protection can give you peace of mind even if your card is stolen. Choosing the most expensive card protection can add to your outgoings in the short term but could save you a fortune in the long run.

When signing up to cash back credit cash, be aware that introductory offers are usually only 3 months. In order to take advantage of this initial period of a greater percentage of return on your purchases, buy larger items if needed and always use your card in place of your debit card. Whereas your debit card does not reward you for groceries and petrol buys your new cash card will especially during the first three months. It is also a great idea to sign up other card holders to take advantage of these offers. If you have another trusted family member who also shops at affiliated stores or a partner who also does the family grocery shopping it makes sense to add them to your account and in effect double the money you earn.