My sister has a Cricut, I needed some letters cut in fabric. She had to use iron on stabilizer on the fabric to cut it. If you are going to use it for small applique I suppose it would be alright but it is a lot of futzing around for little pay-off for fabric. There are better systems.
When I got the letters they still had to be trimmed and I had to purchase a new blade for her because the fabric dulled hers. It was quilting cotton and only 11 letters.