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An uncontested DIY divorce could cost $1,500-$5,000, but the price can be lower or much higher. In 2026, the median cost of divorce is $7,500, while the average cost is $12,900. However, all kinds of factors, from attorney fees to assets, influence the bottom line. For example, a contested divorce, with issues around alimony, child support, and child custody, can run much higher.

Here are details about types of divorce and what to expect cost-wise with each.

How Much Does It Cost To Get a Divorce?

The cost of a divorce can depend on which state you live in, how amicable the parting is, and whether you work with a divorce attorney, own property together, and have children, among others.

Most cases settle before going to trial. Here are common costs if you need to prepare for a divorce.

Recommended: How to Prepare Financially for a Divorce

Without an Attorney

A DIY uncontested divorce is the cheapest option. You and your spouse submit paperwork to your local family court, then fill out and file required documents.

There are different packages typically available, starting at as little as $150 for an online divorce and going up into a few thousand dollars if you’d like support with filing and/or need some mediation.

With an Attorney

A lawyer can only work with one client at a time, so two attorneys are required if both spouses want their own representation.

A divorce attorney will usually ask for a retainer, or down payment, starting at $7,000 as of 2026. If the retainer runs out, the lawyer may bill by the hour. Hourly fees range from $260-$450, but charges of $500 or more per hour are possible, depending on where you live and other variables.

Of course, the longer it takes to reach a final judgment, the higher your attorney fees will be.

Recommended: Understanding Divorce and Retirement Accounts

Mediation

If you’re dealing with a more complex situation and don’t feel comfortable filing yourself, but you don’t want to shell out money for a divorce lawyer, you could consider working with a mediator.

In this form of divorce, both spouses work with a neutral third party who has a handle on the financial and legal aspects of divorce and oversees the process.

A non-attorney mediator may charge $3,000-$8,000 on average per case.

No-cost or low-cost mediation services are often provided by courts, nonprofit organizations, and bar associations.

Collaborative Divorce

In this hybrid of mediation and a traditional divorce using lawyers, each spouse is represented by a collaborative divorce attorney. The goal is to help both parties work toward a mutually satisfactory outcome and, if children are involved, one that keeps their best interests in mind.

Both parties commit, in writing, to using cooperative dispute resolution techniques.

If the process fails, both attorneys must withdraw from the case, and the couple will need to hire new lawyers and continue through family law court proceedings.

Consulting Attorney

If you can’t afford to hire a full-scope divorce attorney, you might be able to hire a consulting attorney for specific tasks. The average total fees for consulting attorneys are about $4,600.

Who Pays for the Divorce?

Most of the time, each spouse pays their own attorney fees and costs.

In select cases involving income disparities or one party unnecessarily complicating the proceedings, a judge may order a spouse to pay his or her partner’s divorce costs.

The following are some of the factors that affect the costs of a divorce.

How Child Custody Impacts Divorce Costs

In a contested divorce, the issue of child custody will likely come up. If the couple is able to agree on a child custody schedule that works for both parents, that is usually the easiest path forward.

For divorces involving children that require an attorney to iron out custody details, costs tend to increase significantly due to the additional time spent working with parents to reach an agreement.

A contested divorce involving custody could also include working with a court-assigned professional, who may interview the parents and children, observe each parent at home with the kids, and make an evaluation based on their findings.

A county custody evaluation could cost between $2,000 and $5,000. A private review could run over $30,000 for contested cases.

Property Division

Couples who share a property may require the help of real estate attorneys or agents who focus on helping couples ascertain the disposition of their homes.

A home appraisal is an unbiased, third-party estimate of a property’s value. As of 2026, it typically costs between $300 and $600, reaching $2,000 for larger houses.

Sometimes couples opt to refinance the mortgage on the marital home into one name, releasing the other spouse from obligation. The cost of refinancing can be in the thousands of dollars.

Alimony

Another potential consideration in a divorce may be alimony, or spousal support.

If both individuals can’t agree on the amount of payment and the time payments are to be made, the court may have to step in.

That can involve litigation and a review of debts and finances. Since the process requires legal counsel, alimony decisions can quickly drive up divorce expenses.

Paying for Divorce: Are Payment Plans Available?

Some family lawyers do offer payment plans. The time to ask about that is during an initial consultation so you can be aware of and prepared for the expenses ahead.

In most situations, paying for a divorce can be a major stressor.

If you and your spouse are on amicable terms and have savings, you could consider pooling together as much as you can to put toward divorce costs. You could also ask to borrow money from relatives or friends. In some cases, couples may know that divorce is looming and start saving for it ahead of time, as unpleasant as that may be.

Some people may opt to put their divorce costs on a credit card and pay the debt over time, with interest. An option that may be more cost-effective is a personal loan.

A personal loan has several potential advantages. The interest rate for a personal loan could be lower than a credit card, depending on your credit score. Most personal loans come with a fixed interest rate, which makes budgeting easier.

You might use a personal loan calculator to make crunching numbers a snap.

Typically, you have between one and seven years to repay the principal plus interest. This can allow you to borrow a significant amount of money and have several years to pay it off.

Recommended: How to Apply for a Personal Loan

The Takeaway

Divorce costs typically run well into the thousands, with a median currently being $7,500 and the average being $12,900. There are potentially less expensive options for those who have a simple, uncontested divorce and are willing to bypass lawyers and DIY the process. But if there are issues such as alimony, child support, child custody, and division of property to wrangle, you are likely going to need a considerable sum of money for the costs. Divorce financing options can include credit cards, funding from savings or family members, and personal loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

How much does a divorce cost on average?

As of 2026, the average cost of a divorce is $12,900, and the median is $7,500. However, the total cost of a divorce can vary depending on factors such as state attorney fees, whether the divorce is contested, and whether the couple has children or shared property.

What is the cheapest way to get a divorce?

For a simple, uncontested divorce, handling the process yourself (DIY) is usually the cheapest option. Online divorce packages can start from as little as $150, rising to the thousands for situations that require help with mediation and filing.

What factors influence the cost of divorce?

Several factors can affect the cost of a divorce, such as child custody, property division, and alimony. A simple divorce on amicable grounds can be relatively fast and inexpensive, while a contested divorce can drag on, increase legal fees, and become quite complicated and expensive.

Can I get a divorce without a lawyer?

In some situations, it is possible to DIY a divorce. This usually happens when the couple is in agreement on all matters, such as child custody and the division of property.

Is mediation cheaper than hiring a divorce attorney?

Yes, mediation is typically cheaper than hiring a divorce attorney, with mediation costing $3,000-$8,000. Working with a divorce lawyer can often cost in the five figures.

Who typically pays for the divorce?

In most cases, each spouse pays their own attorney fees and other divorce costs. In rare instances, there might be a judgment for one spouse to pay some or all of the other spouse’s divorce costs.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

This article is not intended to be legal advice. Please consult an attorney for advice.

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Typically, couples spend 29% of their wedding budget on the venue, which is a big chunk of their funds. Given that the median price of a wedding is around $18,000, according to industry reports, and the average is $34,200, according to the wedding site The Knot, that can mean thousands of dollars invested in the location where you say your vows.

Fortunately, there are ways to reduce the price of your wedding venue. There are free and affordable options, from a backyard to city hall to a beach. Read on to explore your options, plus learn tips to finance your wedding.

Host a Wedding at Home or in a Backyard

This could be at your own home or that of a parent, friend, or other loved one, which will likely be one of the most affordable wedding venues around. Benefits of this choice (besides the lack of rental fees) include the flexibility to have your ceremony on just about any day of the year, plus you have a ready-made shelter if the weather isn’t ideal. By avoiding a wedding venue rental, you can stretch your savings or your wedding loan further on other expenses, such as flowers and entertainment.

Just decide how much of the event will be held outdoors, what rooms of the house should be made available to wedding guests, and how to ensure enough seating.

A couple of other perks to an at-home wedding:

•   Want a pet-friendly ceremony? It doesn’t get any better than a home wedding where your beloved dog is your ring bearer.

•   Any home upgrades made for the ceremony can be enjoyed for a long time afterward. If your powder room could use a glow-up, you might want to concentrate your efforts there for a beautiful bathroom refresh.

•   Or this could be a perfect time to do some outdoor landscaping that will beautify your special day and your home for years to come. As a bonus, a project like this could add value to your home.

Remember to plan the parking logistics, find out how to comply with any noise ordinances, check that your officiant of choice is available to perform the ceremony, and so forth.

Say “I Do” at City Hall: A Cheap and Chic Wedding Venue

A city hall wedding can be a very chic choice. You aren’t restricted to the city hall or courthouse where you currently live. You could choose one that has special significance to your relationship, perhaps in the city where you first fell in love.

Or you can get married in the city hall where you’ll enjoy your honeymoon or your family vacation. As another strategy, you can choose the city hall based on its beauty or retro architectural details. For instance, the city hall in San Francisco has stunning white columns and a gold-capped roof.

The fee for a city hall wedding varies by state and municipality. Generally, it ranges from $30-$250 or somewhat more, including your marriage license. Call the location to find out the exact cost.

There are usually designated days and times for city hall weddings, so find out what they are in the location of your choice and how that would work in conjunction with your post-wedding celebration. Also, ask if there’s a limit to the number of wedding guests you can have and whether you’ll be able to have bridesmaids and groomsmen, given the logistics.

Many couples like to have a special meal after, either solo or with a few friends and family members. It’s your call on how to mark the big day.

Recommended: Wedding Cost Calculator With Examples

Get Married at a Park: An Affordable and Scenic Wedding Venue Idea

Perhaps there are beautiful parks in your town or city full of unique flowers, landscaping, and vistas, or maybe there is one with special meaning to you, say, where the two of you went biking on a first date.

If that’s the case, you could contact the relevant parks department and find out any details about fees and permits. For instance, if you want to marry at Yosemite National Park, you’ll need a special use permit, which currently costs $150.

Some considerations:

•   How accessible is the location for guests? If it’s a small park in the center of town, it’s likely to be fairly accessible. If it’s deep in the heart of a national park system, you may need to decide how to make it practical for guests to find and attend.

•   Other concerns for a park wedding include shelter in case of rain, having enough public restrooms (are they readily available or do you need to rent portable options?), and how comfortable you are getting married in an open space.

•   You might also need to find out what the park’s policy is on receptions. Can you set up tables and have food brought in? Or serve cake and bubbly? Dream it up, brainstorm details, and get confirmation from park officials.

Recommended: Personal Loan Calculator

Plan a Budget-Friendly Beach Wedding

You might consider a beach wedding, with its possibilities for one-of-a-kind sunsets, soft breezes, and tropical drinks. As practical considerations, do you plan to have a ceremony along the ocean on a public beach, or will you locate a private beach? The permits you’ll need will likely be quite different if you plan to have just your ceremony there versus if you also plan to have a beachside reception complete with food, drink, and music.

You’ll also need to create a Plan B or otherwise have shelter available if the weather doesn’t cooperate. And where you plan to have the ceremony, geographically speaking, may help dictate what time of year your wedding should be scheduled. For instance, for a July wedding at your favorite beach, think about how far in advance to plan summer travel.

Then figure out the final details. Do you plan to have alcohol at your reception? That often isn’t permitted on beaches, but there are some that do allow guests to imbibe. Do you want to rope off a section of the beach? Build a bonfire? Again, you might want to ask what the rules and regulations are for the beach you have in mind and be flexible about modifying plans to help make it all come together.

More Cheap Wedding Venue Ideas to Consider

The ideas above aren’t the only affordable locations to consider for your big day. Also keep the following in mind.

Local Community Centers

Depending on where you live, you may find community centers that cost just a few hundred dollars at most to use and provide the right setting for your wedding. You can also consider whether organizations such as the Lions Club, Kiwanis, or Junior League have spaces to rent. Some offer tables and chairs, and others may have fully equipped kitchens.

Couples have found that with vases from a local discount store and flowers arranged by friends and family, this option can help them pull off a wedding on a budget.

College Campus Gardens

Many colleges have pretty areas where they can host weddings, whether or not you are a graduate. Research your area and see what’s available. There might also be some indoor spots with historic architectural details where you could say your vows.

Be sure you understand the guidelines, though. Some universities work with specific vendors (such as catering companies), which can wind up blowing your budget.

Airbnb or Vacation Rentals

A vacation rental can offer a spectacular wedding setting on a shoestring. You might find a charming farmhouse with a storybook garden and loads of bedrooms to house the wedding party. Or perhaps you want to rent a loft in a nearby city.

Whatever type of accommodation you are seeking, be clear up front with the owner about the purpose of your rental to make sure there are no restrictions. Some property owners don’t want gatherings in their spaces, while others are very much in the business of helping people find a place to celebrate.

Breweries or Small-Town Halls

Local businesses can often work with tight budgets to create a wonderful and memorable wedding. For example, a craft brewery may have a private area where you can say your vows and then celebrate with friends and family over an array of their beers and snacks. Some have outdoor spaces where a food truck can pull up to feed your friends and family. Don’t forget to search for nearby distilleries, too.

Many couples like the industrial vibe these spaces can have, or you might find a local lodge or other gathering space that has a quirky, cool ambience for your wedding day.

Local Family Farm

A local farm can be a fun, rustic setting for a wedding without breaking the bank. They offer beautiful countryside and often a barn where you can say your vows and dance the night away. Plenty of farmers are supplementing their business this way these days, so see what’s available. Some partner with caterers and cooks to create a farm-to-table meal as well, which could be within your budget.

Budgeting Tips for a Cheap Yet Memorable Wedding

Even when you choose a free or inexpensive wedding venue, you’ll still likely want to come up with some creative ways to save money for the food, music, drinks, flowers, photography, video, and so on. Some ideas:

•   Tap your circle of loved ones. Do you have a friend who could handle photography or videography? That can help you save a bundle. Or could family members fill vases with flowers from a farmers market to use as centerpieces vs. hiring a florist? Could a pal’s band play, or perhaps everyone could bring a dish for a pot luck feast?

•   You can also explore different ways to help cover some of the wedding costs. For instance, a personal loan might be an option to explore to help pay for your big day. Or perhaps your families might be able to help out financially with some of the venue-related expenses, such as catering.

•   Prioritize your spending. During a discussion with your partner, you could try to determine who will pay for what and how much you’re willing to spend. It could help to discuss priorities so you’re in agreement about where to splurge and where you’re willing to compromise.

If, for example, you know that having beautiful flowers is important to both of you, that could rise to the must-have category. And maybe you want to spend more on photography and less on videography or vice versa. What’s important is that you mutually create and agree on a plan that’s unique to you and your special day.

Financing Your Wedding

When it comes to financing your wedding, a wedding loan could be a good option for your needs. These loans are unsecured personal loans used to cover wedding costs. Rates on personal loans tend to be lower than credit card rates, and they can offer more flexibility on the term of your loan and the amount you can borrow. Plus, you’ll get a fixed rate.

Recommended: How to Apply for a Personal Loan

The Takeaway

With research and budgeting, you can find an affordable wedding venue that makes your big day wonderful and memorable. Options can include an at-home wedding or renting an Airbnb space that you love. You could opt for a city hall wedding or find a park, garden, farm, or beach to provide a beautiful natural setting for your ceremony and celebration.

Even when you find an affordable venue, however, you may need help financing your wedding. That’s where a wedding loan, which is a kind of personal loan, can come into play.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

✓ Checking your rate will not affect your credit score.

FAQ

What are some cheap wedding venue ideas?

Cheap wedding venue ideas can include getting married at home, a friend’s house, a vacation rental, or city hall. Those who like to be outdoors or amid nature can consider a local farm, garden, park, or beach. Local craft breweries and community centers can be good candidates, too.

How can I find affordable wedding venues near me?

Searching online and inquiring about spaces you have seen can yield great, budget-friendly wedding venues. Asking friends and family about weddings they have attended can be worthwhile, too.

Is it cheaper to get married at city hall or a park?

Whether it’s cheaper to get married at city hall or a park will depend on the specific locations and fees you are considering. There are usually small fees involved at both kinds of locations, but consider the big picture, too. Will you want to go out to dinner with a number of friends and relatives after a city hall wedding, or would you rent chairs and hire a guitarist for a park ceremony?

Can I use a personal loan to pay for a wedding venue?

Yes, a personal loan can be used for almost any legal purpose, from paying off medical debt to financing a wedding. Some lenders offer wedding loans specially tailored to meet a couple’s needs for their big day.

What’s the average cost of a budget-friendly wedding?

A budget-friendly wedding can be defined as one that costs no more than $10,000. However, it is possible to pull off a big day for considerably less, potentially half that amount.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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Many people struggle to keep up with the demands and expenses of daily life, which can create stress and anxiety. That’s why some choose a minimalist lifestyle: Fewer possessions make for easier management. Minimalists strive to eliminate anything in their life that does not serve their purpose. This leads to more physical, emotional, and financial space.

If the concept of minimalism appeals to you, read on to better understand what a minimalist lifestyle is, its benefits, and how to start on the path to a simpler, more manageable, and possibly more affordable lifestyle.

What Is a Minimalist Lifestyle?

Minimalist living is uncluttered by superfluous items such as luxury cars, excessive clothing, and purely decorative furnishings. There can be many reasons someone chooses a minimalist lifestyle. They might want to simplify their life to reduce stress, improve their health, or reduce harm to the environment. They may also want to cut back on expenses and improve their budgeting and finances.

Recommended: Free Credit Score Monitoring

Surprising Benefits of a Minimalist Lifestyle

When you have less stuff, it follows that you have less to worry about. A minimalist lifestyle allows you to carry less literal and metaphorical baggage around.

Another benefit is that minimalists buy fewer things, which can allow you to save money. From a holistic perspective, minimalism reduces consumerism, and that can benefit the planet.

How to Live a Minimalist Lifestyle

Living a minimalist lifestyle can seem daunting for some, requiring a mindset shift. Here’s a window into a more minimalist mindset and lifestyle to give you a taste of what it involves. And don’t forget as you read that there are benefits to living below your means.

Invest in Experiences

Rather than collecting things and possessions, a minimalist lifestyle emphasizes experiences. Minimalists spend, just in a more deliberate way. For example, minimalists may spend on vacations and concerts rather than on cars and jewelry.

Audit Your Life

Auditing your life involves deciding what is most important and eliminating anything superfluous. Deciding what is most important can be difficult, but some questions to ask yourself are: How am I doing mentally and physically? What’s important to me now that perhaps wasn’t before? The answer to these and similar questions can help you pinpoint your core values and priorities.

A free budget app can help you audit your spending and evaluate how much of it is really necessary.

Eliminate Needless Expenses

A meaningless expense to one person may be valuable to another. That’s why conducting a life audit is important to help you decide which expenses are not serving your purpose. For example, a person might discover that buying gas is often unnecessary if they can manage without a car most of the time. Or that mid-price brands and gently used items can be just as nice as luxury goods.

Set Limits and Delegate

A minimalist lifestyle is easier to control. Setting limits and delegating is one way to live a minimalist lifestyle because you have less to manage. For example, you might use an accountant to do your taxes, or hire someone to manage your website. You might have fewer screens or electronics or downsize to a smaller home.

Recommended: Does Net Worth Include Home Equity?

Honor Your Priorities

The goal of auditing your life is to establish priorities to eliminate what doesn’t align with them. Part of the journey to minimalism is learning to appreciate what you have and not constantly desire new things. Perhaps you and your partner decide to live on a single income while one of you cares for the family. You may also earn less and have to economize.

Minimalist Lifestyle Tips

How do you implement a minimalist lifestyle? Because the changes can be profound, try making small changes at first as you gradually adjust to a new mindset.

Recommended: What Is the 50-30-20 Budget?

1. Declutter Your Environment and Your Mind

A great place to start is to declutter your environment. Start with your home, your workspace, your car. Get rid of things you haven’t used in a while or that you are just hanging onto in case you need them. As the space around you becomes less messy, you might find your thinking becomes more clear. You can also donate items or make some money by selling your unwanted stuff.

2. Be a Purposeful Not Prolific Consumer

Minimalists still make purchases, but the emphasis is on quality rather than quantity. An example is choosing to use one credit card that serves many purposes rather than five because each one comes with different rewards. Yes, you may benefit from free miles and cash back, but you will also have to buy more to earn those points and rewards, which is consumerism, the antithesis of financial minimalism.

3. Digitize Movies and Books

Most of us have bookcases full of books that sit and gather dust. It’s fine to keep some treasured items and classic novels, but you can also download e-books or visit your local library. Declutter your home of old DVDs, CDs, and books you don’t need.

4. Recycle and Reuse

Reusing shopping bags, refilling a water bottle instead of buying bottled water, or taking your own cup to Starbucks are ways to cut back on trash and single-use products. You’ll save money and help the environment.

5. Get Organized

As you declutter, you’ll find ways to be more organized. Find a space for things you want to keep, and use storage bins and organizers. When everything has a place, you’ll waste less time trying to locate things, and you’ll be more motivated to put things back when you’ve used them.

Recommended: The 52 Week Savings Challenge

The Takeaway

A minimalist lifestyle is appealing, considering how busy and cluttered daily life can be. You don’t have to embrace full-on minimalism immediately but can take small steps, such as establishing goals and priorities, decluttering your environment, and organizing. You can also reduce your expenses and financial obligations this way. As you progress, you may find that your mind clears, your life slows down, and you are able to budget more appropriately too.

Take control of your finances with SoFi Coach. You can easily view all of your accounts in one convenient dashboard: bank and investment balances, current debts, spending breakdowns, and credit score. Easily set up budgets and spot upcoming bills. And get personalized insights on everyday money questions and take action with Coach chat, the AI guide that’s powered by the playbooks of SoFi Financial Planners, so its guidance comes from expert knowledge.

Meet SoFi Coach, your smart personal guide to getting your money right.

FAQ

How do you live a minimalist lifestyle?

Living a minimalist lifestyle requires prioritizing and eliminating things that do not align with your values. The process of elimination will be different for everyone, but it does not have to be quick or painful. Just removing one thing or downloading a budgeting and money tracking app can help you achieve a simple minimalist lifestyle.

What is an example of a minimalist?

An example of a minimalist is someone who lives with very little furniture (or none at all) or someone who moves to a smaller home. A less extreme version of a minimalist might be someone who simplifies things by clearing items from countertops, buys few clothes, or chooses a vegan diet.

What is the 90 rule for minimalism?

The hardest part of achieving a simpler minimalist lifestyle is decluttering, but the 90 rule can help you decide what to get rid of. Choose a possession, and ask yourself if you’ve used that item in the past 90 days. If not, then it’s a candidate for elimination from your life because it is not currently serving a useful purpose.

Is it hard for a beginner to start a minimalist lifestyle?

Starting a minimalist lifestyle doesn’t have to be hard. You can ease into it by organizing your environment and discarding obvious clutter, duplicate or superfluous objects, and items you haven’t used in months. Focus on what truly matters to you, and remove what doesn’t align with your life priorities.

Do I have to stop buying things to live a minimalist lifestyle?

You don’t have to stop buying things to live a minimalist lifestyle, but you can spend your money in a more mindful way. Focus on quality over quantity, prioritize intentional purchasing to avoid impulse shopping, and invest in experiences rather than material possessions.

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Photo credit: iStock/Pramote Naksomrit

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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An ATM (automated teller machine) can be a convenient way to deposit or withdraw money from your bank account, check your account balance, and conduct other aspects of your banking business.

But how do you use an ATM? Knowing how an ATM works may help you get the most out of your banking transactions. Read on to learn how to use an ATM.

What Is an ATM?

An ATM is a computerized machine that performs some of the same functions as a human teller at a bank, such as dispensing cash.

ATMs provide certain banking services quickly and conveniently. You can access them at banks, but it’s also usually possible to find ATMs at grocery stores, in shopping centers, in major hotel lobbies, and in airports. They also may be at convenience stores, restaurants, and other places where cash could be needed.

You can typically withdraw cash from ATMs and check your bank account balance. You may also be able to deposit cash at an ATM or possibly checks, although deposits have more restrictions than withdrawals.

How Does an ATM Work?

An ATM machine gives bank customers easy access to their banking resources, often around the clock. An individual typically inserts their debit card into a reader that scans their banking information, and then they can conduct transactions. (At some locations, contactless transactions may be possible; see more on this below.)

Here are some of the main functions an ATM can usually perform:

•   Withdraw cash.

•   Make deposits. However, to do so, the device typically needs to be within the same network as the customer’s bank. Often, it’s not possible to make a deposit at an out-of-network ATM or, if it is, you may be charged a fee.

•   Check your account balance, which may help you avoid overdrafting when making a withdrawal or using a debit card. The balance may appear on the ATM screen or on the printed receipt. If the ATM is out-of-network, this service may come with a fee.

Some ATMs do make it possible to access their services without a debit card present. This is known as a cardless withdrawal. These types of withdrawals are typically supported by a smartphone app that uses technology such as a QR code instead of a debit card. This can provide the ATM with the account information it needs to complete the transaction.

Things You Can’t Do at an ATM

ATMs do have limitations; here are some things consumers may not be able to do at an ATM.

•   Withdraw coins

•   Open a new checking account or savings account

•   Close an account, such as an individual bank account or a joint bank account

•   Send a money order

•   Purchase a cashier’s check.

How Much Are ATM Fees?

It may be free to use an in-network ATM, but when there isn’t one around and you need cash (or to conduct another transaction), you’ll likely be hit with a fee for using an out-of-network device.

It’s wise to read the fine print associated with your checking account to better understand what kind of fees you may need to pay to use an ATM. It can also be helpful to make note of where some local in-network ATMs are or use your bank’s app or website to find them. This can make avoiding ATM charges easier.

How much can ATM fees be?

•   The average out-of-network fee is currently $4.86. This typically includes a $1.64 fee levied by your bank and an average of $3.22 charged by the ATM’s owners.

•   Additionally, if you are traveling internationally, you may have fees of, say, $2 to $5 to make withdrawals as well as a conversion fee.

Worth noting: Several banks will waive fees when their clients use an out-of-network ATM. If you often rack up many out-of-network ATM fees, you might want to look into which banks offer this service.Or you could look for a bank account with no fees.

How to Find an ATM

If you need cash or you want to deposit a check, here are a couple of ideas for how to find an ATM:

•   You can usually use your mobile banking app to find ATMs. There may be a map function or tool, or you may be asked to enter a zip code to see nearby devices.

•   If you bank at a traditional vs. an online bank, you can visit a branch which will often have ATMs available.

•   There are third-party services that can help you access surcharge-free ATMs.

To make this process easier, you can bank with a financial institution that has a large network of ATMs you can use without a fee. Allpoint, STAR, and MoneyPass are examples of these networks.

How to Withdraw Money from an ATM

Withdrawing money from an ATM is relatively simple, but there are several actions you’ll need to take.

Step-by-Step Guide to Withdraw From an ATM

When withdrawing cash from an ATM, follow these steps.

1.    When prompted by the screen, insert your debit card into the machine.

2.    Enter your PIN number. This is the custom PIN (personal identification number) associated with the debit card linked to your bank account.

3.    Choose the transaction type. In this case, it would be a withdrawal.

4.    Pick the account to access. If you have multiple bank accounts, this step will make sure the money is coming from the right place.

5.    You’ll likely be prompted to enter the dollar amount you want to withdraw (or press the option showing your choice of amounts), and you may be asked to select your bill denominations.

6.    Take the card back. Now it’s time to complete the transaction. Many ATMs will prompt you to take your card back and then the machine will dispense your cash.

How Much Money Will an ATM Let You Take Out?

There are typically limits on how much you can withdraw from an ATM. (This is often done to make sure there is enough cash in the machine to go around vs. a few customers draining the funds.)

•   Daily withdrawal limits are typically between $500 and $5,000.

Check with your bank to learn its limits and whether it determines that by calendar day or by a 24-hour period.

Recommended: What is a Money Market Account?

How to Deposit Money at an ATM

You can also learn how to use an ATM machine to deposit money. Just keep in mind that only certain ATMs will accept deposits, so you’ll want to be aware that depositing money may not be a possibility at the ATM closest to you.

1.    Find an in-network ATM or an ATM that allows deposits to the bank associated with your debit card.

2.    Insert your card and enter your PIN (typically a 4-digit code).

3.    Choose “deposit” as your transaction type.

4.    Select the account you want to receive the deposit.

5.    Type in the exact amount of the intended deposit.

5.    Insert the cash or check. If it’s a check, endorse the back first; then follow the on-screen instructions to get your card back and a receipt, if desired.

Other Transactions You May Be Able to Complete at an ATM

Now that you know how to withdraw money at an ATM and deposit as well, these are some of the other things banking customers may be able to do at these devices.

Cash Checks and Deposit Money Orders

Some bank’s ATMs may let you cash checks for free and deposit money orders.

Make Bill Payments

At some financial institution’s ATMs, you might be able to pay your mortgage, home equity loan, or credit card bill you have with them at an ATM.

Get a Cash Advance From a Credit Card

You may be able to get a cash advance from a credit card (though this typically carries a high interest rate, so proceed with caution).

Tips to Keep Yourself Safe at ATMs

With both in-person and online banking, security is important. When using an ATM machine, it’s important to learn how to do so safely, whether making a deposit or withdrawal. Here are some tips:

•   Be aware of your surroundings. If there is someone loitering around an ATM (especially at night), you might want to go elsewhere. If you are making a deposit, you might want to consider making a mobile check deposit instead.

•   Consider using ATMs located inside bank branches.

•   Have your card already in your hand as you approach the ATM versus fumbling through your pockets or bag while at the ATM.

•   Cover the keypad when entering in the PIN number so no one else can see it. Some keypads are designed in such a way as to help protect your personal information as you type in those digits.

•   Review ATMs closely for misaligned card readers, skimming devices (more on that in a moment), or suspicious markings before using one.

•   If you are withdrawing cash, put it away ASAP when you receive it. Don’t walk away from the ATM with cash in your hands.

Also be aware that there are ATM scams. One common one involves card skimmers, a device that a fraudster attaches to an ATM (or gas pump card reader) in order to fraudulently collect the account information of users. Inspect card readers for signs of tampering; you may try to wiggle an ATM’s card reader to see if it is loose to help detect card skimmers.

If you have reason to be concerned, it could be wise to avoid this ATM and look for another one.

The Takeaway

ATMs can offer a convenient way to access a number of essential banking services such as withdrawing cash without having to actually visit a branch location during business hours. It’s important to pay attention to ATM fees, which are typically easier to avoid when using an in-network ATM. It’s also essential to keep safety in mind to avoid theft or fraud when using an ATM.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

What should I do if the ATM dispenses the wrong amount?

Contact your bank — or the owner of the ATM, if the device is out-of-network (their contact information should be listed on the ATM) and explain what happened. Keep your receipt, and follow the advice given.

What happens if an ATM eats my debit card?

If your card gets stuck in an ATM, wait a few minutes to see if it is a temporary glitch. You can also try pressing the cancel button to see if the machine reboots. If not and the ATM is outside a branch of your bank, call the bank on your cell phone and ask if a representative can come out to assist you. If the ATM is at another location, you probably won’t be able to get the card back. In that case, use your bank’s mobile app to put a freeze on the card right away so that no one else can use it, and call your bank to request a replacement card.

How many times can I use an ATM?

How many times you can use an ATM often depends on how much money you withdraw each time. Most banks limit the dollar amount someone can withdraw (usually $500 to $5,000) per day. Check your bank for its withdrawal limits.

Can I use my debit card at any ATM?

You can generally use a debit card to withdraw cash at any ATM, even if it is out-of-network. However, making a withdrawal at an out-of-network ATM typically involves having to pay fees. You may not be able to make deposits at an out-of-network ATM.

How long does an ATM deposit take to clear?

With many banks, cash deposits are available by the next business day. Your cash deposit may even be available the same day if you make the deposit before your bank’s daily cutoff time. And at some banks, cash deposits may be available immediately if you use their ATMs. However, if you use an out-of-network ATM, deposits generally take longer to clear.

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Photo credit: iStock/Eva-Katalin

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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A first-time homebuyer isn’t only someone purchasing a first home. It can be anyone who has not owned a principal residence in the past three years, some single parents, a spouse who has not owned a home, and more.

If the thought of a down payment and closing costs sends a chill down your spine, realize that first-time homebuyers often have access to special grants, loans, and programs.

“First-Time Homebuyer” Under the Microscope

To get a sense of who qualifies for a mortgage as a first-time homebuyer, take a look at the government’s definition.

The U.S. Department of Housing and Urban Development (HUD) says first-time buyers meet any of these criteria,:

•   An individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase

•   A single parent who has only owned a home with a former spouse while married

•   An individual who is a displaced homemaker (has worked only in the home for a substantial number of years providing unpaid household services for family members) and has only owned a home with a spouse

•   Both spouses if one spouse is or was a homeowner but the other has not owned a home

•   A person who has only owned a principal residence that was not permanently attached to a foundation (such as a mobile home when the wheels are in place)

•   An individual who has owned a property that is not in compliance with state, local, or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure

For conventional (nongovernment) financing through private lenders, Fannie Mae’s criteria are similar.

Recommended: The Complete First-Time Homebuyer Guide

Options for First-Time Homebuyers

First-time homebuyers may not realize that they, like other buyers, may qualify to buy a home with much less than 20% down.

They also have access to first-time homebuyer programs that may ease the credit requirements of homeownership.

Federal Government-Backed Mortgages

When the federal government insures mortgages, the loans pose less of a risk to lenders. This means lenders may offer you a lower interest rate.

There are three government-backed home loan options: FHA loans, USDA loans, and VA loans. In exchange for a low down payment, you’ll pay an upfront and annual mortgage insurance premium for FHA loans, an upfront guarantee fee and annual fee for USDA loans, or a one-time funding fee for VA loans.

Note: SoFi does not offer USDA loans at this time. However, SoFi does offer FHA, VA, and conventional loan options.

FHA Loans

The Federal Housing Administration, part of HUD, insures fixed-rate mortgages issued by approved lenders. Historically, more than 80% of FHA-insured mortgages are for first-time homebuyers each year.

If you have a FICO^® credit score of 580 or higher, you could get an FHA loan with just 3.5% down. If you have a score between 500 and 579, you may still qualify for a loan with 10% down.

USDA Loans

The U.S. Department of Agriculture offers assistance to buy (or, in some cases, even build) a home in certain rural areas. Your income has to be within a certain percentage of the average median income for the area.

If you qualify, the loan requires no down payment and offers a fixed interest rate.

VA Loans

A mortgage guaranteed in part by the Department of Veterans Affairs requires no down payment and is available for eligible active-duty service members, Reserve members, National Guard members, veterans, and certain surviving spouses.,

Although a VA loan does not state a minimum credit score, lenders who make the loan will set their minimum score for the product based on their risk tolerance.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Government-Backed Conventional Mortgages

Fannie Mae and Freddie Mac, government-backed mortgage companies, do not originate home loans. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

They make mortgages available that are geared toward lower-income, lower-credit score borrowers.

Freddie Mac’s Home Possible program offers down payment options as low as 3%. There are also sweat equity down payment options and flexible terms.

Fannie Mae’s 97% LTV (loan-to-value) program also offers 3% down payment loans.

A Mortgage for Certain Civil Servants

If you’re a law enforcement officer, firefighter, or emergency medical technician (EMT) working for a federal, state, local, or Indian tribal government agency or a teacher at a public or private school, the HUD-backed Good Neighbor Next Door program could be a good fit. It provides 50% off the listing price of a home in specific revitalization areas. In turn, you have to commit to living there for 36 months.

Homes are listed on the HUD website each week, and you have to put an offer in within seven days. Only a registered HUD broker can submit a bid for you on a property.

If you’re using an FHA loan to buy a home in the Good Neighbor Next Door program, the down payment will be $100. If using a VA loan to purchase a house through the program, buyers will receive 100% financing. If using a conventional home loan, the usual down payment requirements stay the same.

State, County, and City Assistance

It isn’t just the federal government that helps to get first-time buyers into homes. State, county, and city governments and nonprofit organizations run many down payment assistance programs.

HUD is the gatekeeper, steering buyers to state and local programs and offering advice from HUD home assistance counselors.

The National Council of State Housing Agencies has a state-by-state list of housing finance agencies, which cater to low- and middle-income households. Contact an agency to learn about the programs it offers and to get answers to housing finance questions.

💡 Quick Tip: Jumbo mortgage loans are the answer for borrowers who need to borrow more than the conforming loan limit values set by the Federal Housing Finance Agency ($832,750 in most places, and up to $1,249,125 in high-cost areas). If you have your eye on a pricier property, a jumbo loan could be a good solution.

Using Gift Money

First-time homebuyers might also want to think about seeking down payment and closing cost help from family members.

If you’re using a cash gift, your lender will want a formal gift letter, and the gift cannot be a loan. Home loans backed by Fannie Mae and Freddie Mac only allow down payment gifts from someone related to the borrower., Government-backed loans may have looser requirements.,

Want to use your 401(k) to make a down payment? You could, but financial advisors frown on the idea. Borrowing from your 401(k) can do damage to your retirement savings.

The Takeaway

First-time homebuyers may still be in good shape even if they don’t have much of a down payment or their credit isn’t stellar. Lots of programs, from local to federal, give first-time homeowners a break.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Can you be considered a first-time homebuyer twice?

Yes, there are multiple scenarios in which you can be considered a first-time homebuyer. When you’re buying your first home is one, of course, but others include if you or your partner has not owned a home for three years prior to your closing, if you are a displaced homemaker who previously owned a home with your spouse, or if you are a single parent who previously only owned a home with your ex.

What credit score is needed for a first-time homebuyer?

For a conventional loan, a first-time homebuyer will typically need a credit score of 620 or more. However, many homebuyers may be eligible for government-backed loans, such as FHA loans, VA loans, and USDA loans, which have lower credit score requirements.

How long after selling a house are you considered a first-time buyer again?

After selling a house, you can be considered a first-time homebuyer again after three years of not owning a principal residence. This means that you would still be able to benefit from first-time homebuyer programs, such as down payment assistance.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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