Rule 424(b)(3)
                                             Registration No. 333-06335


PRICING SUPPLEMENT NO. 21           TO PROSPECTUS DATED JULY 30, 1996
                                       (As supplemented August 8, 1996)


                          IBM CREDIT CORPORATION

                            MEDIUM-TERM NOTES
                           (Variable Rate Note)

                (Due One Year or More from Date of Issue)

Designation:  Variable Rate        Original Issue Date:
 Medium-Term Notes Due              February 12, 1997
 February 12, 1998


Principal Amount:  $50,000,000     Maturity Date:
                                    February 12, 1998

Issue Price (as a percentage of    Regular Record Dates:
 Principal Amount):  99.96%         Fifteenth calendar day, whether or not
                                    a Business Day, immediately preceding
                                    the corresponding Interest Payment
                                    Date


Interest Rate:  Fed Funds          Interest Payment Dates:
Daily Unweighted Average + 20bp     Quarterly on the 12th day of each May,
(1 Day Lag, 1 Day Rate Cutoff)      August, November, and February commencing  
                                    May 12, 1997 and ending on the maturity 
                                    date with no adjustment for period end 
                                    date on a following New York Business Day
                                    convention.  


Commission or discount (as a       CUSIP: 449 22L 3B0
 percentage of Principal
 Amount): .04%

Redemption Provision: N/A

Option Provisions: Issuer has the right to convert to a Fixed Interest Rate 
 of 5.90% beginning August 12, 1997 and on each Interest Payment Date  
 thereafter.
   
 


                                   Form: [X] Book-Entry
                                         [ ] Certified

This Pricing Supplement supplements and, to the extent inconsistent
therewith, amends the description of the Notes referred to above in the
accompanying Prospectus Supplement and Prospectus.


                                 INTEREST


     Interest on the Notes will be calculated based on a year of 360 days
consisting of 12 months and the actual number of days occurring in any such
month.

     If any payment of principal or interest is due on a day that is not a
Business Day, that payment may be made on the next succeeding Business
Day.  No additional interest will accrue as a result of the delay in
payment.  For purposes of the offering made hereby, "Business Day" as used
herein and in the accompanying Prospectus Supplement means each day on
which commercial banks and foreign exchange markets settle payments in The
City of New York.  Capitalized terms used but not defined herein have the
meanings assigned in the accompanying Prospectus Supplement and
Prospectus.


                                OPTION

     Issuer will have the right to convert in whole from a Fed Funds based
interest rate to a Fixed Interest Rate of 5.90% on August 12, 1997 and on
each Interest Payment Date thereafter, upon 10 calendar days irrevocable
notice by telephone and facsimile prior to 12:00 noon.

  
                           PLAN OF DISTRIBUTION

     The Notes will be sold to Smith Barney Inc. for resale to one or more   
investors at a fixed public offering price. After the initial public offering
of the Notes, the public offering price and any concession or discount may be
changed.


Dated:  January 29, 1997