A credit card is “low trust” confirmation of identity. Usually for this kind of services, you also have to submit your ID for verification. Perhaps you’re based in a country where this is not possible so they didn’t ask upfront?
Either way, it’s their process so you’re of course welcome to go elsewhere if you want. I don’t see it as a “bad thing” for companies to require some level of trust.
I'm based in the UK where we all have credit cards. I also did give them my ID - which is NOT typical for other hosting providers, actually, but I'm happy to provide it - but that still didn't satisfy them.
Either way, it’s their process so you’re of course welcome to go elsewhere if you want. I don’t see it as a “bad thing” for companies to require some level of trust.