Pros

• It enables you to save money by earning free cash on your purchases. Therefore it makes sense to use a cash-back card for regular transactions and benefit from a reward scheme.
• It helps you to improve your credit rating because if you pay for goods using a card and settle the balance in full, it will enhance your credit rating.
• Some cash- back cards give you bonuses for just signing up. Sometimes these cards will also offer bonuses throughout the life of the card.
• Also some of the issuers do not charge an annual fee on a cash-back card. This means if you pay your bill in full every month, you will not have to worry about any fees at all.

Cons

• Cash-back credit cards often encourage customers to make needless purchases which make it difficult to clear off the balance in full and they can earn interest from it.
• Although customers earn money in cash-back cards but many card companies a higher rate of APR from their customers. The interest cost of all cash-back cards decreases the actual cash-back you will earn.
• Some cash back cards restrict the amount of money that can be earned.