Is paying off defaulted loans that aren't on my credit report going to help my credit score?

Is paying off defaulted loans that aren't on my credit report going to help my credit score?

I owe $9,000 in student loans. They just started garnishing my wages for $500/month. The loans were from 1998 and do not appear on my credit report. The collection company told me that once they're paid off that they will appear as not in default on my credit.

Answer : If they are garnishing your wages, that means they have gone to court and received a judgment. Those are public records and will eventually get placed on your credit report.Paying the debt off will not get a judgment removed form your reports, but it will show it was paid off. The effect to your score will be minor.....judgments hurt your score badly for a few years, whether paid off or not.