I just got Rey. She is the basic 4* and Im wondering when I can start using her? Do I need to get her all the way to 7* or can I start using her now? Also what is the best way to Mod her?
When you start playing, you are placed into a server for arena with others who started about the same time as you. Thus, to answer your question, you'd need to say when you started. If it's an older server where practically everyone in the top 500 has nothing but 7 star characters... no, don't use her yet. But if it's a newer server and you still see 4, 5 & 6 star characters fairly often... sure, she's great!! Go ahead and use her.
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No chance you can use Rey for high positions then. If you fell out, you will have really hard time climbing back up.
just login with another account (if you are using android, i dunno how the game works on iOS)
your arena payout will easily sustain your daily crystal consumption
don't forget to get the droid and dark side pack too!