The broad answer is “as soon as possible”, assuming you know how to use it and you don’t have one yet. If you know how to properly use a credit card, there is no real right or wrong time to open one. However, one thing that could impact this decision is if the card comes with initial cash back rewards for spending a specified amount of money within the first 90 days. Based on the amount needed to be spent in the 90 day period, it can beneficial to wait for one of the below circumstances:

• Before paying for a vacation: When I was in my second year of college I wanted to travel for spring break. I chose Florida as my destination based on the fact that I wanted to get some sun and I had a family member who lived there meaning I could stay there for free. I researched plane tickets and assumed my trip would cost me about $500 for the 4 days I wanted to be there. The issue was that I didn't, and wouldn’t, have the $500 before I would need to buy plane tickets.

• Before paying for a big expense: Knowing that a credit card can come with initial perks in the form of cash back, it can be said that opening a new card can make you some extra money when paying for a big expense.

When taking on a new big expense, or when life just kind of happens and now you need a new set of tires, it may be beneficial to open a new credit card to lessen the initial financial burden.

Again, I cannot stress this enough, a credit card should only be opened by someone who knows how to properly use it. Just because life happens and you now realize that you can get some quick cash back to help you pay for an unexpected expense shouldn't be the reason you open a credit card. Neglecting the due diligence needed to properly manage a credit card can end up causing excessive credit card debt. Do your due diligence to understand how to properly use a credit card to receive the perks.

Knowing how to properly manage a credit card is the difference between ending up in a cycle of crippling debt or receiving cash back in the form of $100 or more every few months.

These are the guidelines needed to properly manage a credit card:

• Only open credit cards you plan to keep open for multiple years - The average age of a credit account affects your credit score. The older the average age of your accounts, the better for your credit score. Opening a ton of new credit cards is NOT a good idea. Every time you apply for new credit it will drop your credit score by 5-10 points for about a year. While this is seemingly not a large change, applying for multiple lines of credit in a short period of time can have a more negative impact on your overall credit score.

The key takeaway: Open new credit cards sparingly.

Additionally, closing credit cards can negatively impact your credit score. When applying for new credit, lenders look at your credit score and your credit utilization ratio. Closing a credit card can increase your credit utilization ratio and decrease your credit score. Both of these are negative signs to lenders. To ensure you can get the new line of credit you need for a car loan, personal loan or mortgage, in the near future, it may be best not to close your credit card account.

The key takeaway: Don't close credit cards if you need to apply for new credit.

• ALWAYS pay off the FULL STATEMENT balance - This single act is the make or break for proper credit card management. Being able to pay off the entire statement balance every single month is the only thing that makes it possible to receive the full benefits the card has to offer. Doing anything else will negatively impact your credit score and it will cost you interest on the borrowed funds.

There are two things that make this process easy to manage: 

     - Auto Debit

     - Budgeting

• Auto-Debit is a MUST - The moment you get approved for your new card, take the couple of minutes needed to set-up auto debit. When setting up auto debit, be sure to set it up for the FULL statement balance. Auto debit will prevent you from incurring the outrageous interest rates tacked onto the rollover balance. Setting up auto debit also ensures that you will not miss payment due dates, therefore avoiding any late fees and it increases both your credibility to creditors and your credit score.

• Building a budget / Monitoring how much you spend - Building a budget is easy, but following one can be difficult. Budgeting is meant to make it easy to keep track of your expenses so that you DO NOT spend more than you make. 

The whole point of having the credit card is for the perks. There are only three things you need to do ensure you're receiving all the perks. 

     - Limit the credit cards you open to only the necessary ones.

     - Remain diligent in setting up auto debit for the full statement balance.

     - Don't overspend. Create a budget and monitor your spending.

If your credit card is not properly managed, it can be very dangerous to your financial health. If you cannot, or will not, monitor how much you spend, steer clear of any credit cards until you are willing to do the basic steps needed receive the benefits from having one.

Assuming a credit card is the right choice for you, these are the best ways to maximize your perks:

For all of your everyday purchases, stop using cash and your debit card, only use your credit card. It only makes sense that you should only use your credit card to buy everything within your budget as it gives you cash back. If you receive unlimited 1.5% cash back, then every time you spend on your card you save 1.5%. 

In some cases, credit cards have increased cash back rewards for certain spending habits like 5% cash back on specified spending categories, such as restaurants, retail stores, etc. It is good to know this, but it shouldn't be a reason for you to go out to eat on a night when you planned to save money by eating at home. Always choose to stay within your budget over spending more on your card as a means to get cash back.

Research these key factors to see if the benefits of a credit card match your needs:

• Type of Credit Card: The type of credit card you apply for should depend on the end result you’re seeking.

Looking to earn perks like cash back or travel points for cheaper travel? Then you should look at different reward cards.

Looking to get a discount at your favorite retail store for back-to-school shopping? Look at different retail store credit cards.

Looking to build or rebuild your credit score? Then you should look at different secured credit cards.

• Annual Fee: When deciding to apply for a credit card, it is important to know whether or not it has an annual fee.

Not every credit card has an annual fee. For those credit cards that don’t have an annual fee, it is fair to say that as long as you properly manage your credit card by paying off the full statement balance every month, you shouldn't receive any fees.

For those credit cards that do have an annual fee, there are three possible outcomes in any given year depending on how much is spent on the card during that year:

     - The annual fee can cost more on an annual basis than the total rewards you receive from using the credit card.

     - The annual fee can offset the total rewards you receive from using the credit card.

     - The annual fee can be significantly less than the total rewards you receive, enabling you to actually profit.

Annual fees need to be taken into consideration when deciding whether or not to open a new credit card. If you plan to consistently spend a significant amount of money on a card with an annual fee year after year, then it could be more beneficial than a card that doesn’t come with an annual fee. The exception to this is if you don’t plan to consistently spend on the card year after year. Every year you don’t meet the minimum spending amount needed to receive more perks than the fee costs, you would be losing money by having the credit card.

• Initial Benefits: Credit cards may offer initial benefits such as additional cash back for spending a certain amount of money in a specified amount of time after opening the card.

• Intro APR: Some cards offer low introductory rates as an incentive to sign up. These rates will have a set timeframe and can be as low as 0%.

• Ongoing APR: Once an introductory rate is no longer in effect, the ongoing rate will begin. Generally ongoing rates are quite high and are definitely something to keep in mind when racking up a balance on a credit card. On average these rates can range from 14% up to 26%.

• Ongoing Benefits: Ongoing benefits can be cash back, travel points, in store discounts, etc.

Knowing how to properly manage a credit card is the difference between ending up in a cycle of crippling debt or receiving cash back in the form of $100 or more every few months.

These are the guidelines needed to properly manage a credit card:

• Only open credit cards you plan to keep open for multiple years - The average age of a credit account affects your credit score. The older the average age of your accounts, the better for your credit score. Opening a ton of new credit cards is NOT a good idea. Every time you apply for new credit it will drop your credit score by 5-10 points for about a year. While this is seemingly not a large change, applying for multiple lines of credit in a short period of time can have a more negative impact on your overall credit score.

The key takeaway: Open new credit cards sparingly.

Additionally, closing credit cards can negatively impact your credit score. When applying for new credit, lenders look at your credit score and your credit utilization ratio. Closing a credit card can increase your credit utilization ratio and decrease your credit score. Both of these are negative signs to lenders. To ensure you can get the new line of credit you need for a car loan, personal loan or mortgage, in the near future, it may be best not to close your credit card account.

The key takeaway: Don't close credit cards if you need to apply for new credit.

• ALWAYS pay off the FULL STATEMENT balance - This single act is the make or break for proper credit card management. Being able to pay off the entire statement balance every single month is the only thing that makes it possible to receive the full benefits the card has to offer. Doing anything else will negatively impact your credit score and it will cost you interest on the borrowed funds.

There are two things that make this process easy to manage: 

     - Auto Debit

     - Budgeting

• Auto-Debit is a MUST - The moment you get approved for your new card, take the couple of minutes needed to set-up auto debit. When setting up auto debit, be sure to set it up for the FULL statement balance. Auto debit will prevent you from incurring the outrageous interest rates tacked onto the rollover balance. Setting up auto debit also ensures that you will not miss payment due dates, therefore avoiding any late fees and it increases both your credibility to creditors and your credit score.

• Building a budget / Monitoring how much you spend - Building a budget is easy, but following one can be difficult. Budgeting is meant to make it easy to keep track of your expenses so that you DO NOT spend more than you make. 

The whole point of having the credit card is for the perks. There are only three things you need to do ensure you're receiving all the perks. 

     - Limit the credit cards you open to only the necessary ones.

     - Remain diligent in setting up auto debit for the full statement balance.

     - Don't overspend. Create a budget and monitor your spending.

If your credit card is not properly managed, it can be very dangerous to your financial health. If you cannot, or will not, monitor how much you spend, steer clear of any credit cards until you are willing to do the basic steps needed receive the benefits from having one.

Assuming a credit card is the right choice for you, these are the best ways to maximize your perks:

For all of your everyday purchases, stop using cash and your debit card, only use your credit card. It only makes sense that you should only use your credit card to buy everything within your budget as it gives you cash back. If you receive unlimited 1.5% cash back, then every time you spend on your card you save 1.5%. 

In some cases, credit cards have increased cash back rewards for certain spending habits like 5% cash back on specified spending categories, such as restaurants, retail stores, etc. It is good to know this, but it shouldn't be a reason for you to go out to eat on a night when you planned to save money by eating at home. Always choose to stay within your budget over spending more on your card as a means to get cash back.

Research these key factors to see if the benefits of a credit card match your needs:

• Type of Credit Card: The type of credit card you apply for should depend on the end result you’re seeking.

Looking to earn perks like cash back or travel points for cheaper travel? Then you should look at different reward cards.

Looking to get a discount at your favorite retail store for back-to-school shopping? Look at different retail store credit cards.

Looking to build or rebuild your credit score? Then you should look at different secured credit cards.

• Annual Fee: When deciding to apply for a credit card, it is important to know whether or not it has an annual fee.

Not every credit card has an annual fee. For those credit cards that don’t have an annual fee, it is fair to say that as long as you properly manage your credit card by paying off the full statement balance every month, you shouldn't receive any fees.

For those credit cards that do have an annual fee, there are three possible outcomes in any given year depending on how much is spent on the card during that year:

     - The annual fee can cost more on an annual basis than the total rewards you receive from using the credit card.

     - The annual fee can offset the total rewards you receive from using the credit card.

     - The annual fee can be significantly less than the total rewards you receive, enabling you to actually profit.

Annual fees need to be taken into consideration when deciding whether or not to open a new credit card. If you plan to consistently spend a significant amount of money on a card with an annual fee year after year, then it could be more beneficial than a card that doesn’t come with an annual fee. The exception to this is if you don’t plan to consistently spend on the card year after year. Every year you don’t meet the minimum spending amount needed to receive more perks than the fee costs, you would be losing money by having the credit card.

• Initial Benefits: Credit cards may offer initial benefits such as additional cash back for spending a certain amount of money in a specified amount of time after opening the card.

• Intro APR: Some cards offer low introductory rates as an incentive to sign up. These rates will have a set timeframe and can be as low as 0%.

• Ongoing APR: Once an introductory rate is no longer in effect, the ongoing rate will begin. Generally ongoing rates are quite high and are definitely something to keep in mind when racking up a balance on a credit card. On average these rates can range from 14% up to 26%.

• Ongoing Benefits: Ongoing benefits can be cash back, travel points, in store discounts, etc.