Payday Loans in San Jose
San Jose is a large city in Northern California, which has witnessed rapid economic growth, as it is placed in the middle of the Silicon Valley. It has attracted crowds of investors of all types, who have been fueling the city’s economy and made it one of the USA’s top economically developed cities. Today, San José is one of the nation’s most affluent cities with a notoriously high cost of living. It is home to scores of businesses and enterprises, banks, both large and small, and there are quite a number of payday loan lenders.
All registered payday lenders operate in strict accordance with a respective law established in California and stipulating the key parameters: the APR cap, loan size, fee size, etc. The most reputed lenders in San José are Check 2 Cash, Cashmax, Fast Credit Financial, Advance America Cash Advance, Tiny Cash Payday Loans San José, Lucky Money, etc. This segment began to develop and grow in the 1990s and received another boost in the late 2000s, in the times of the mortgage crisis. The biggest advantage of a cash loan, most clients say, is not having to have a perfect credit record and an opportunity to get cash online just moments after applying.
The law in San Jose (and in the rest of California) does allow to run a payday lending business, but there are caps and limits. For example, companies are not allowed to lend more than $300 or to grant any sum to someone who has not discharged a current debt yet. The max. loan term is 31 days, rollovers are not allowed. The maximal annual percentage rate is 460%, finance charges should not exceed 15% of the granted sum. These regulations should prevent borrowers from falling deeply into indebtedness.
Municipal Code 20.70(table 20-140) and 20.80.1050 -20.80.1060 (Enacted in 2012)
- Payday loan stores cannot be closer than 1,320 feet from very low-income areas (San Jose was the first city that limits distance by income) and from another lender.
Cap of number stores:
- San Jose has limited the number of payday loan establishments – just 38 new stores. If one store wants to close, another can open at the same place within 6 months.
San Jose Payday Loans Stats
The 2021 year, 17 payday loan storefronts (7 different companies) have active licensees in San Jose. (Source – DFPI)
- Cash Central (California Check Cashing Stores, LLC): 8 stores (the oldest – from 24 Sep 2004);
- Check Into Cash (Check Into Cash of California, Inc): 3 stores (the oldest – from 31 Dec 2004);
- Cash 1 (Buckeye Check Cashing of California, LLC): 2 stores (works from 28 Mar 2007);
- Cashmax: 1 store (works form 11 May 2016);
- Cash Plus (Darren D. Pham): 1 store (works from 31 Dec 2004);
- Advance America (Cash Advance Centers of California, LLC): 1 store (works from 31 Dec 2004);
- ACE Cash Express (Populus Financial Group, Inc): 1 store (works from 6 June 2011);
San Jose General Information
San José was founded in 1777 and began to grow rapidly in the early 1800s, and in 1850 became the first capital of California. In the early 1900s, the city entered the period of industrial growth. It witnessed boom during WWI and WWII. In the 1950s, high-tech semiconductor companies began to settle in the Clara Valley and cemented the reputation of what we know as the Silicon Valley. The resulting economic and demographic growth fueled business activity on a global scale and indirectly contributed to the evolution of the local payday loan market. Actually, San José online payday lenders exist thanks to technologies developed in their home region.
Population and Residential Market
The Silicon Valley’s tremendous technological and industrial potential has made the place a great attraction for population. People arrive here from around the nation and the rest of the world. Therefore, San José’s population continues to grow and the local residential market continues to show rapid growth.
As of now, San José’s municipal population is 1,035,320; urban population is 1,821,900. The racial makeup is: there are 40.7% of whites, 34.8% of Asians, 32.3% of Hispanic, 3% of African Americans, and 0.6% of Native Americans. Just like in the rest of California and, mostly, the USA, the non-Hispanic white population is decreasing in relation to Hispanic whites and Asians.
The median age is 36.4 y/o, the unemployment rate is 6.4%. The family dual-income and household income are higher than in the rest of the nation: $59,600 and $96,662 respectively. Given the extremely high home value and rent size ($711,511 and $2338 respectively), home ownership is higher than in other Californian cities (57.5%). The annual rent burden is 22.5%. With affluence level, this high, payday lenders may have fewer reasons to worry about unpaid loans.
San Jose Today
San Jose is home to a huge number of world-famous high-tech companies. Lots of people are employed in governmental facilities. For example, Cisco Systems, a major manufacturer of hardware, software and telecommunications equipment, has a staff of nearly 15,000 employees. Headquartered in San José are Adobe Systems, Cadence Design Systems, Brocade Communications Systems, Altera, PayPal, Rosendin Electric, Lee’s Sandwiches, the North American headquarters of Samsung Semiconductor, and other companies. Also, there are numerous major facilities of businesses based elsewhere.