What is a legal reason for a creditor to deny credit?

A creditor can deny credit for several legal reasons, and among those, past bankruptcies stand out as a significant factor. When a person has filed for bankruptcy in the past, it indicates to creditors that they may have difficulty managing their debts and fulfilling their financial obligations. Thus, this history can lead to a denial of credit applications, as creditors assess the risk involved in lending to individuals with a previous bankruptcy record.

While low income and job stability also play a crucial role in a creditor’s decision-making process, they may not solely constitute legal grounds for denial in every situation. A lender evaluates an applicant's overall financial picture, which includes income, stability of employment, credit history, and existing debt obligations.

In summary, while each of these factors can indeed influence a creditor's decision, a past bankruptcy is a definitive legal reason that can directly lead to the denial of credit. Therefore, the choice suggesting that all of these factors result in legal ground for denial holds true, illustrating the complexity of credit approval processes.