The credit card provider has introduced a ‘Top Up’ feature that allows you to add up to £10,000 of your own money, which can then be spent to earn points on a variety of premium rewards.
Those benefits include theatre trips, concerts, flights, clothing and flowers.
The feature means that if you spend £750 per month on your card, you’d earn up to £225 in rewards. This rises to £600 in rewards if you spend the maximum £2,000 on the card during the month.
Currently, the experiences on offer – which could be a trip to see The Lion King or an evening at a BAO restaurant – are only available in London, Manchester, Bath, Birmingham and Bristol.
However, trips abroad and car rental rewards are available across the UK. Each experience comes with a ‘fair usage’ limit. As an example, this came to £40 at Soho’s cocktail bar Soma.
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The limit is decided by Yonder, and if you go over it, it will cover the excess and add an extra transaction to your monthly bill.
As well as the chance to earn points through debit-style expenditures, the credit card has no transaction fees for your holiday spending. It also offers the chance to spend your points on Uber journeys and Apple products.
Tim Chong, Yonder’s co-founder, said the card “is the perfect solution” for customers to feel they have more spending power than their credit card limit provides, as the product “breaks down the rigid barriers between” debit and credit card spending.
But what do the experts think?
Andrew Hagger, finance expert and founder of MoneyComms, said the APR of 32.9% included on the card was high for customers who carry over a balance, as “most new credit cards offer 24.9% representative”.
He added: “Any money you put on your card isn’t earning you any interest but is good news for Yonder – they are getting free money to lend out.”
Alastair Douglas, CEO of TotallyMoney, said: “It’s good to see a new approach to rewards cards, and if used to its full potential, customers can top up their accounts when making a big purchase to earn points, which they can then spend on flights or with Yonder’s reward partners. Another benefit with Yonder is that eligible purchases will be protected with Section 75.
“If you’re considering applying, then it’s worth remembering that Yonder is a credit card, and you’ll need to pass the eligibility checks to access it. That means making sure your credit report is up to date and doesn’t have any errors. It’s also worth reading the small print to find out how the points work, and if you’ll really be able to make the most out of them.”
Douglas added: “So do your research and check all your options – because some providers will give you a discount on your weekly shop or on your favourite airline, which might be more useful.
“You might even discover that paying £15 per month for the full Yonder membership is a better option because it gives you bonus points for sign-up and spending. You’ll just need to work out the value of the points for your own personal circumstances. And remember that if you have cash sitting on your Yonder card, not only will you earn zero interest on it, but its spending power will slowly fade away due to inflation.”
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Yonder offers attractive features for consumers looking to earn a little reward each time they spend, but also avoid paying unnecessary fees when using the card abroad.”
She added: “The top-up facility is also fully protected by the FSCS, but money movements can take up to seven business days.
“However, a traditional current account could be a better alternative for those looking to earn interest on any balance.
“Credit cards, on the other hand, are an ideal choice, as any goods or services not received [that] are valued over £100 up to £30,000 are covered under Section 75 of the Consumer Credit Act. It is always worth comparing credit card perks with the interest charged on the card, and there are alternative cards charging less than Yonder [that offer] perks or are free to use abroad.”
