This is another story about a questionable character in the financial world. Motola Omobamiduro was a former used car salesman with a conviction for not paying the owners when he sold their cars. But that is in his past, currently he is running a company that provides secured credit cards: Plastk.
Secured credit cards are specifically designed for individuals who need to improve their credit but are unable to qualify for a regular credit card. These cards require the cardholder to provide a deposit equivalent to the credit limit, typically ranging from $2000 to $5000. If the client fails to make payments, the company can use the deposit to cover the outstanding balance. By making timely repayments, individuals can rebuild their credit score in under two years as the company reports their payment behavior to credit bureaus.
Plastk customers seem to be having problems getting their deposit back when they cancel the card. Believe it or not! It seems like you do not need to be a bank or have a lot of financial backing to be issuing credit cards. The moral of the story is to do your research before you send money to a company you are not familiar with. Unfortunately, it is sometimes difficult. This company was recommended by Credit Karma and is named as the top 5 secured credit cards in Canada in 2023 on a popular financial website.
If you are in need of a secured credit card, I would recommend researching options from established banks such as Capital One and Home Trust. These institutions have a solid reputation, and when I conducted my research years ago, they were among my top choices. They still frequently appear in many top five lists today.