That depends on the situation. It can be a good thing and it can be a bad thing. Some girls call guys cute if they have feminine personalities or appear shy or introverted. In this case, they are just 'cute' as in cute like a teddy bear but they are not what girls call 'hot' or 'attractive'. These types of guys frequently get friendzoned. They could be slightly chubby or they could be too short for women to date. Whatever it is, they lack certain physical characteristics that women find desirable such as toned muscles, nice six pack or strong jawline etc..
On the other hand, some girls do call guys 'cute' if they are hot and attractive. I think that this depends on where you are because I think American girls use the word 'cute' to mean 'hot' or 'attractive' more frequently, whereas British girls use this term more frequently to describe a weak, feminine, sexually undesirable male. So I think it depends on the origin and where you live.