Risk-based pricing means the use of a credit report in determining the cost or terms of credit to reflect the risk of default. The term is used in reference to consumer credit transactions, not consumer leases or business transactions. The Risk-Based Pricing Rule, which applies to most car dealerships, is intended to improve the accuracy of credit reports, alert consumers to negative information in their credit reports, and create a chance to correct errors. This lesson will examine the impact of the Rule on dealerships.