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Here's some good news for all of our wallets and our credit. FICO is making changes to the way they calculate credit scores and it could mean an increase is most people's credit scores.

Here's what's happening: right now, your FICO score is the credit score that most lenders use to determine your credit risk. It includes your payment history, amounts you owe, the length of your credit history, and the types of credit.

Now, FICO will NOT include medical collections in that score! They say it will make sure medical collections have a lower impact on the score. That's huge! Because the Federal Reserve says 52 percent of Americans collections are medical collections.

As Forbes Magazine put it, the credit world will take steps to recognize an emergency room bill after a bad day is different than chronic credit card overspending.

Again, they say it'll raise scores an average of 25 points for people who have a medical debt but have an otherwise good payment history. Anthony Sprauve with FICO says you could start seeing a change in your credit score later this year.

To get a free copy of your credit report, visit annualcreditreport.com

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