If you currently use credit cards, you need to know how to get the most out of them. One important tip that many credit card holders aren't aware of is the ability to raise their credit limits.

For every credit card you own, the issuing creditor or bank has set a certain limit based on your spending habits, credit history, and stated household income. While you likely know this, you may not know that you can raise these credit limits, usually after holding the credit card for just six months.

If you log-on to any one of your given credit card account websites, you'll probably find an account services section which will offer certain credit management tools. In this section you should see a link that says something like "increase your line of credit." If you click on that link, you'll be able to request a larger line of credit for the specified credit card.

Generally you can choose any credit limit you'd like, although requesting something outrageous will likely get rejected. Let's look at an example:

Current credit line/limit: $5,000
New requested credit line/limit: $7,500

You'd be asking for a $2,500 increase, which isn't unheard of, and should typically be approved. Even if it's not, your credit card company will usually counter that offer with something that will still boost your current credit limit. Once you fill in the required information you simply need to click submit and either wait 24-48 hours for an answer, or you may get lucky and get an approved credit line increase right on the spot.

Why would you need a credit line increase, especially if you don't spend up to your current limit? It's all about increasing your available credit and showing creditors you can support a large amount of debt. A creditor would rather give a loan to a consumer with a $30,000 credit line with only $500 outstanding as opposed to a consumer with a credit line of $5,000 with $500 outstanding.

Your credit score will also rise over time due to the higher percentage of available credit. Using the example above, the first borrower would have roughly 98.5% available credit, and the second borrower would have 90% available credit.

Remember that total available credit is an important factor in determining your credit score. The higher that percentage is, the higher your credit score will be. Keep in mind that your credit score may fall in the short term as you make new inquiries for extended credit, but over time it will build a stronger credit profile.