Many people get credit cards because of the rewards offered.

In many cases, that’s a mistake, because carrying a balance costs you more money than any reward offered.

“Forty-six percent of credit cardholders report having a credit card balance. About a quarter (23%) don’t think they’ll ever pay it off,” according to Bankrate’s 2025 Credit Card Debt Survey.

That’s a very expensive choice to make.

“It’s a big mistake because the average credit card interest rate is more than 20%,” he says. “Even a good rewards card is paying maybe 3%, 4%, 5%, or 6% back,” Ted Rossman, senior industry analyst at Bankrate, told CNBC.

If you carry a balance on your credit cards, a reward card, which usually comes with a higher interest rate, may not be your best choice.

“It really depends on the individual,” said credit card rewards company Zurp co-founder Troy Osinoff told TheStreet. “If you carry a balance on your credit card and find it hard to pay it off in full each month, a low-interest credit card would likely be the better option.”

Despite that, many Americans pick cards based on the awards they offer, and now, one popular credit card has apparently gone out of business.

Mortgage-based credit card appears to close

For most Americans, the biggest bill each month is their mortgage. Mortgage fintech company Mesa wanted to take advantage of that by offering a credit card that offered cash back and rewards on home-related expenses.

“Mesa enters the market with mortgage loans that offer 1% cash back on original or refinanced loans. Additionally, the company offers a new credit card designed specifically for homeowners. The card provides rewards points on mortgage payments, as well as homeowner-related expenses such as HOA fees, utilities, home repairs, and even everyday purchases like gas and groceries,” the company shared in a press release.

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At the time of its launch, Mesa founder and CEO Kelley Halpin compared the company’s offering to popular travel and dining rewards cards, except with a focus on home-related expenses.

“Halpin emphasizes that the card’s rewards structure is designed to be more generous toward ordinary home-owning costs. For instance, users can earn 1x points on mortgage payments, 2x points on gas and groceries, and 3x points on home services. These points can be redeemed for various benefits, such as cashback, travel, or credits toward mortgage payments,” she shared.

Credit card rewards often come with a higher-interest-rate card.

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Mesa appears to have shut down its credit card business

View From the Wing’s Gary Leff shared a note from his Mesa credit card on his popular website, noting that Mesa has closed its credit card business.

“Mesa closed my account, and that of many readers. The option to transfer points to airline miles and hotel points is gone. The only redemption option left in the app appears to be redeeming for a statement credit at $0.006 per point. I cashed out my points,” he shared.

The company made the news official on its website.

“Effective as of December 12, 2025, all Mesa Homeowners Card accounts are closed. All credit cards have been deactivated, and you are no longer able to make any new purchases or earn Mesa Points,” Mesa posted. “Please see the account closure notification sent to the email address registered to your account for more information.”

Any holders of a Mesa credit card should follow Leff’s lead and redeem any points while they still can. They should also actively monitor their inbox for emails from the company or related entities.

Snapshot of American credit card debt

  • Total U.S. credit card debt: Americans owed about $1.21 trillion in credit card balances by mid-2025, reported Forbes.
  • Average per person: The typical American with credit card debt carried roughly $6,473 in balances, Forbes shared.
  • Alternative average estimate: A different source reports the average American credit card debt around $6,580 (Q4 2024) and total U.S. card debt near $1.18 trillion in early 2025, Discover reported.
  • Household measure: Some analyses find the average credit card debt per household was about $11,019 as of late 2025, according to WalletHub.
  • Higher balances for borrowers: One dataset shows the average unpaid balance for card holders at around $7,321, Credit Ninja reported.

What happens when your credit card company goes out of business

“While some cards may be closed when the issuer closes, you should still plan to make payments as usual unless you’re told otherwise in an official communication. Keep your eyes on your mailbox and inbox for information about your account status and if there’s a change in where you’re supposed to make your payments,” personal finance expert Eric Rosenberg told CardRatings.com when SVB Bank collapsed.

Bankrate shared some facts about what happens when your credit card issuing bank closes.

  • When a bank fails, the FDIC steps in to maintain operations, including its credit card business.
  • The FDIC looks for a buyer for the failed bank, which would become your new card issuer and set the terms of your account. You can opt out of any changes, transfer or pay off your balance and close the account.
  • Credit card accounts are almost always sold, but if no buyer emerges, the FDIC would find a bank to act as a custodian, giving account holders notice before accounts are closed.
  • You’ll still need to make payments on your balance to avoid damaging your credit score or facing debt collection.

Mesa was not a bank. Its cards were issued by Celtic Bank, which remains in operation.

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