And even if you've had a late payment every so often, you may have better credit than you think.
Credit reports are important because lenders like to avoid risk.
If you have a history of full and timely payments, lenders will sleep better, fidget less and offer better terms. As a consumer, this is what you want. But credit reports and the concepts behind them are fairly complex. Imagine if perfect credit was required. Few loans would be made and every lender in town would be bankrupt.