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            SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C.  20549




                         FORM 8-K

                      CURRENT REPORT




          Pursuant to Section 13 or 15(d) of the
              Securities Exchange Act of 1934




DATE OF REPORT (Date of earliest event reported): October
30, 1998



     AMERICAN GENERAL FINANCE CORPORATION
(Exact Name of Registrant as Specified in Charter)



Indiana               1-6155          35-0416090
(State or Other   (Commission File    (IRS Employer
Jurisdiction of       Number)         Identification
Incorporation)                        No.)


601 N.W. Second Street, Evansville, IN 47708
(Address of Principal Executive Offices)(Zip Code)




Registrant's telephone number, including area code:
(812) 424-8031


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Item 5.    Other Events.

 On  October 30, 1998, a duly authorized Committee (the
"Terms and Pricing Committee") of the Board of Directors of
American General Finance Corporation (the "Company")
authorized the issuance in an underwritten public offering of
$400,000,000 aggregate principal amount of the Company's 5
3/4% Senior Notes due November 1, 2003 (the "Notes") under
the Company's previously filed Registration Statement on Form
S-3 (Registration No. 333-28925), as amended by Amendment No.
1 on July 1, 1997 (the "Registration Statement"), and the
related Prospectus dated July 2, 1997 and Prospectus
Supplement dated October 30, 1998. 


Item 7.    Financial Statements, Pro Forma Financial
           Information and Exhibits.

 (c)  Exhibits.  The following Exhibits are filed as part of
      this Report and as Exhibits to the Registration
      Statement:


Exhibit
Number     Description 

4(a)      Resolutions of the Terms and Pricing Committee    
          adopted on October 30, 1998 establishing the
          terms of the Notes, certified by an Assistant     
          Secretary of the Company. 

4(b)      Form of 5 3/4% Senior Notes due November 1, 2003

5         Opinion of Baker & Daniels, special counsel for
          the Company, as to the legality of the Notes.


                        SIGNATURES


      Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
Report to be signed on its behalf by the undersigned hereunto
duly authorized.

                     AMERICAN GENERAL FINANCE CORPORATION



Dated: November 3, 1998   By:/S/ GEORGE W. SCHMIDT  
                            George W. Schmidt
                            Controller and Assistant
                            Secretary





                       EXHIBIT INDEX



Exhibit
Number                 Description                        

4(a)       Resolutions of the Terms and Pricing Committee
           adopted on October 30, 1998 establishing the
           terms of the Notes, certified by an Assistant
           Secretary of the Company.

4(b)       Form of 5 3/4% Senior Notes due November 1,
           2003.

5          Opinion of Baker & Daniels, special counsel for
           the Company, as to the legality of the Notes.