Paid off my balance transfer today!

13 Sep

Back in February 2013, I was offered 0% balance transfer from MBNA Smart Cash Mastercard.  I transferred $8,000 over to my brokerage account to buy Suncor.  As the story goes, I sold out Suncor for a measly $70.05 profit plus $99.00 in dividends.  After I sold Suncor, the share price kept on climbing as Warren Buffet decided to put stake in them!  If I had kept Suncor till today, I would have profited $1510.05!!

My instincts were wrong and I fell short of achieving a great return from Suncor big time!

Today, I paid back MBNA $7,441.93 to bring my balance transfer to zero.  My 0% promotional rate ends on September 16, 2013.  There is a 1% transfer out fee, so this “0% promo rate” actually cost me $80 for the past six months.

I received a letter from MBNA.  I am invited to upgrade to the no-annual-fee MBNA Smart Cash World Mastercard!  I can start enjoying 5% cash back all over again on eligible gas and grocery purchases for the first six months.  After six months, it will revert to 2% on eligible gas and grocery purchases.  All other purchases, I can earn 1% with no limit to the cash back I can earn.

MBNA Smart Cash World

Since I am back to zero balance in my MBNA Smart Cash, I have accept their Smart Cash World offer.  For the next six months, I will put all my gas and groceries to my new card!  Let the cash back begin!  If I spend $1600 in the next six months in gas and groceries, my cash back will cancel out my $80 transfer out fee!  Easy peasy, I spend around $120/mo on gas and $130/mo on groceries.

Done deal!

By the way, CIBC Visa is offering me a 0% balance transfer promotion… tempting, but I think I better not since I have a mortgage to take out coming up very soon.

 

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