Many people switch to cloth after battling diaper rash with disposable diapers. Depending on the cause of the rash, cloth diapers can help. You may still get occasional rashes with cloth and will wonder if you can use rash cream. Short answer-yes. The longer answer is to just be careful about what kind you use.
When using disposable diapers, it's easy to slather a thick layer of commercially available diaper cream and put the diaper on. Many parents use cream with every change, even if there is no rash. With cloth, you just want to be a little more careful about the cream you use. We do have some rashes that are related to the food's my daughter eats, so we do use creams sometimes when we see redness. We don't use them so much as a preventative. Creams with cod liver oil will make your diapers smell fishy. Zinc oxide may stain your diapers, but shouldn't really harm them otherwise. Other creams may cause your diapers to repel.
The biggest factor on the success of diaper cream is the chemistry of your water, wash rountine and detergent. Some people use zinc oxide creams with no issues. For others, the cream doesn't completely come off and stains a little. I always recommend using a fleece (or flushable if you don't have fleece) liner to see how the cream will wash off your fleece and suedecloth diapers.
I have many creams available in my store. I particularly like Natural Baby Company's Magic Stick and Bum Magic's Grab and Go stick. The diaper sticks are nice because you don't get anything on your hands, and they work well with most diaper and wash routines. They are nice choices if you like to use creams preventatively with each change. You will need one for each child, though since they have direct contact with the diaper area.
Now through February 21, all Bum Magic products are 20% off. Take advantage!