Incremental Backups Defined

This may seem like a silly title and noob question but I'm going to ask it anyway. With incremental backups stored remotely and with no local retention can I still pick and choose the day that I want to roll back to? Until now I have always used full backups on a daily basis for my small hosting server (just me and a few clients). My reasoning was that the one time we had a hacking issue if I had not been making daily full backups of each account then we would have been screwed as all of the most recent two days of backups had the hacked files already in the user accounts before we noticed the hack. I have been told several times that I should use incremental backups but in the case such as I just mentioned would I be able to roll back to the version of the accounts from three or five days ago? My understanding of rsync and incremental is that I would only have access to the previous day's backup which for me is not going to let me sleep well at night. Could someone clear this up for me?