Getting the most out of your credit card

The advertisements will appear before movie previews at 12 highly attended theaters in major metropolitan areas from November 27 through December 3. To view the ad click here.

Several Federal Reserve Banks will make consumer literature available in the theater lobbies. In addition, the Federal Reserve is making the ad available to the Reserve Banks and others, such as credit counseling organizations, for use in creating their own responsible credit use campaigns.

5 tips for getting the most from your credit card according to the Federal Reserve

1. Pay on time

Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month--for example, if it's due on the 10th and you get paid on the 15th--contact your credit card company to see if they will change your billing cycle to fit your cash flow.

2. Stay below your credit limit

If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate.

3. Avoid unnecessary fees

Credit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees. If you need a cash advance, withdraw enough so that you don't have to take a second cash advance--and incur a second fee--later in the month.

4. Pay more than the minimum payment

If you can't pay your balance in full each month, try to pay as much of the total as you can. Over time, you'll pay less in interest charges--money that you will be able to spend on other things, and you'll pay off your balance sooner.

5. Watch for changes in the terms of your account

Credit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these "change in terms" notices, you can decide whether you want to change the way you use the card.