How much personal data should an app really need to work well?

I’ve started paying more attention to the permissions apps ask for. Some tools want access to contacts location or payment details even when I’m not sure they actually need them. I understand that some data helps improve the experience but sharing everything by default doesn’t feel right. I’d rather use a tool that explains why it needs certain information and lets me choose what to share. What makes you trust a company enough to share your personal data and what information do you never feel comfortable giving away?