RULE 424(b)(2)
                                                  REGISTRATION NO. 33-56207


PRICING SUPPLEMENT NO. 42               TO PROSPECTUS DATED NOVEMBER 3, 1994
                                        (As supplemented November 17, 1994)


                          IBM CREDIT CORPORATION

                             MEDIUM-TERM NOTES

                             (Fixed Rate Note)

            (Due from 9 months to 30 years from date of issue)


Designation:  Fixed Rate                        Original Issue Date:
  Medium-Term Notes Due                           August 22, 1995
  August 22, 2000

Principal Amount:  $20,000,000                  Maturity Date:
                                                  August 22, 2000

Issue Price (as a percentage of                 Regular Record Dates:
  Principal Amount):  100%                        Fifteenth calendar day
                                                  whether or not a Business
                                                  Day prior to the
                                                  corresponding Interest
                                                  Payment Date

Interest Rate:  6.75%                           Interest Payment Dates:
                                                  The 22nd of each month,
                                                  commencing September 22,
                                                  1995 and ending on the
                                                  Maturity Date

Commission or discount (as a                    Denominations:  $5,000 and
 percentage of Principal                          integral multiples of
 Amount):  0.0%                                   $1,000 in excess thereof

Redemption Provisions:                          CUSIP:  44922L V94
  The Notes are redeemable at the
  option of the Company on any
  Interest Payment Date,
  occurring on or after
  August 22, 1996
                                                Form:  [X] Book-Entry
                                                       [ ] Certificated

                                                    
     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.




2

                               INTEREST

          Interest on the Notes will be calculated based on a year of
360 days consisting of 12 months of 30 days each.

          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.

                              REDEMPTION

          The Notes are redeemable by the Company on any Interest
Payment Date occurring on or after the August 22, 1996 Interest
Payment Date, in whole or in part, on at least 30 days prior notice at
a redemption price of 100% of the principal amount thereof plus
accrued interest thereon to the date of redemption.

                         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:  August 9, 1995