What is a key benefit of setting up automatic payments?

The key benefit of setting up automatic payments is that they help avoid late fees and maintain good credit. When payments are made automatically on their due dates, individuals are less likely to forget or overlook these payments, which can result in costly late fees. Additionally, consistently making payments on time is crucial for maintaining a good credit score. A strong credit score not only lowers the cost of borrowing but also opens up more financial opportunities, such as better loan terms and interest rates.

The other options do not accurately reflect the benefits of automatic payments. For instance, while automatic payments can facilitate consistent cash flow management, they do not directly influence investment revenue or guarantee loan approval. Furthermore, they do not inherently ensure higher interest rates; in fact, consistent and timely payments can often help individuals qualify for lower interest rates over time due to an improved credit profile.