By adding more granularity to the factor level for qualitative variables we can get more accurate results. This depends, of course, on the number of levels available in the data but more is preferable.
If we have logistic data e.g. en-suite bathroom yes or no, then we can only have 2 levels: 1 and 0 but if we can gauge and create multiple levels of quality then we have a better way to predict the dependent variable when these values are specified for prediction.