Final answer:
Credit agencies are private agencies that evaluate the credit of individuals based on their borrowing history, payment reliability, savings, and investments.
Step-by-step explanation:
Credit agencies are private agencies that evaluate the credit of individuals. These agencies assess an individual's creditworthiness based on their borrowing history, payment reliability, savings, and investments. The credit rating provided by these agencies helps banks and other financial institutions determine the interest rates and the amount of credit they are willing to offer to individuals.