What is often the penalty for writing a check with insufficient funds?

When you write a check without sufficient funds in your account, the check is unable to be processed, which results in it "bouncing." This situation typically incurs a bounced check fee, which is charged by your bank as a penalty for attempting to withdraw more money than you have available. Banks impose these fees to cover the administrative costs associated with processing the bounced check and to discourage overdrawing accounts.

The other choices do not directly relate to the consequences of writing a check with insufficient funds. For example, an increased credit score typically results from responsible borrowing and repayment behaviors, not from the process of writing checks. Similarly, a decrease in account limits or loan approval consequences are not standard penalties for insufficient funds in relation to check writing. The primary and most recognized consequence in this context is indeed the bounced check fee.