iQuanti: Typically, you can start using your new credit card as soon as you activate it, but that doesn't necessarily mean you should start using a new credit card to pay for everything. While your new cash back rewards credit card may offer rewards and incentives that help you get more value from your spending, it's always important to be mindful of your overall spending so that you can make your payments on time. 

Here are some things to consider before you start using your new credit card.

Make a Budget

Making a budget will help you forecast how much money you can spend using your credit card without going into debt.

When making your budget, be sure to take into account all expenses, including anything that you may not pay for with your credit card. In order to avoid paying interest, you will want to make sure you can pay off your credit card balance in full every month.

Even if you expect to receive cash back rewards, it's important to have enough to pay the entire balance because it may take time for the rewards to become available, oftentimes they won't be available until after you've made a payment. Then, see which expenses make sense to put on your credit card.

Prioritize Cash Back Purchases

When making your budget, make a note of which purchases can earn you cash back with your credit card.

For example, you may earn 3% back on groceries and decide to purchase groceries with your credit card, while using other payment methods for your utility bills if there are no bonus rewards. This way you can always make sure you are maximizing savings when using your credit card.

Set Credit Building Goals

Every credit card can help you build or maintain good credit. If you're looking to build credit, be mindful of your spending limit and try not to get too close to it. Your credit score will most likely improve so long as you use your credit card regularly and pay off the balance in full.

Look into Consolidating Debt

Your new credit card may have a special offer where you put outstanding balances from other cards onto your new card. It may make sense to do this if your new credit card offers a low-interest rate on this kind of balance transfer. 

The Bottom Line

Before you start using your new credit card, it helps to have a sense of how you want to use it to help you reach your financial goals. New credit cards often come with incentives to spend — and it's fine to take advantage of these offers, but cardholders should always make sure the amount he or she plans to spend fits one's budget.