I think the actual trade-off is between average acceptable risk at society level.

Some societies prefer huge risks for huge benefits, in those one (might) need a more detailed credit reports because everything is faster, people accept huge risks and the situation can suddenly change.

Some societies prefer more stability. Lower risks, lower surprises. Less opportunities, everything is slower, people can't even take that many risks, simpler histories will do th trick.

From what I notice though, housing seems to be a problem in both types of societies, irrespective on how credits are given, because there are other things involved (regulation, NIMBY, housing used as value, airbnb, geography, etc).