You can go broke or get rich depending on how you manage risk. I am more familiar with auto-insurance where there is a lot of cut-throat competition for customers. But I would guess that consumer credit is similar.

Business will use every scrap of info they can get, that they are legally allowed to use. Everything you know about a consumer is plugged into actuary tables to calculate the probabilities. This is used (where permitted by law), 1) to raise prices for the riskier consumers, and 2) to lower prices for the safer consumers.

This is not an argument that we should permit creditors access to everything. This is just a statement that until they are legally prevented, expect credit companies to use everything they can get their hands on.