Depending on the lender, they might actually be after people who are always in debt, and who pay their credit cards bills each month but never entirely pay them off.

No, it's safer to lend to someone who has handled credit well (i.e. by paying it back) than someone who has no track record.

There's a catch-22 if rules are so strict so that you can't get credit because you haven't had credit before, but in general "positive" credit reporting seems pretty beneficial.