<PAGE 1>

                            Form 10-Q
                                
                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
        Quarterly Report Pursuant to Section 13 or 15(d)
             of the Securities Exchange Act of 1934



For Quarter Ended  March 31, 1998      Commission file number 2-80466




                        Norwest Financial, Inc.
         (Exact name of registrant as specified in its charter)




                  Iowa                                42 1186565
       (State or other jurisdiction of             (I.R.S. Employer
        incorporation or organization)             Identification No.)




   206 Eighth Street, Des Moines, Iowa                      50309
(Address of principal executive offices)                 (Zip Code)




Registrant's telephone number, including area code    (515) 243-2131


Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.  Yes   X .    No     .

Indicate the number of shares outstanding of each of the issuer's
classes  of  common  stock,  as of the latest  practicable  date.
Common Stock (without par value):  1,000 shares outstanding as of
May 1, 1998.

The   registrant  meets  the  conditions  set  forth  in  General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore  filing
this Form with the reduced disclosure format.



<PAGE 2>
                 PART I.  FINANCIAL INFORMATION
                                
                     NORWEST FINANCIAL, INC.
                                
                   Consolidated Balance Sheets
                                
                     (Thousands of Dollars)

<TABLE>
<CAPTION>
                                   (Unaudited)
                                    March 31,     December 31,

           Assets                     1998            1997
<S>                                <C>           <C>
Cash and cash equivalents          $  151,445     $   94,600

Securities available-for-sale       1,106,703      1,063,600

Finance receivables:
  Consumer:
    Loans                           3,902,500      3,893,550
    Sales finance contracts         2,455,273      2,332,535
    Credit cards                      409,795        422,435
  Commercial                          480,179        465,601

       Total finance receivables    7,247,747      7,114,121

  Less allowance for credit losses    305,343        297,800

       Finance receivables - net    6,942,404      6,816,321



Notes receivable - affiliates         641,282        646,832


Property and equipment (at cost, less
  accumulated depreciation of 
  $113,210 for 1998 and $107,435
  for 1997)                           118,485        102,537

Deferred income taxes                  60,866         64,420

Other assets                          362,098        533,614


          Total assets             $9,383,283     $9,321,924
</TABLE>

See accompanying notes to consolidated financial statements.





<PAGE 3>
                     NORWEST FINANCIAL, INC.
                                
                   Consolidated Balance Sheets
                                
                     (Thousands of Dollars)
<TABLE>
<CAPTION>
                                         (Unaudited)
                                    March 31,     December 31,
          Liabilities and
        Stockholder's Equity          1998            1997
<S>                                <C>             <C>
Loans payable - short-term:
  Commercial paper                 $1,625,531      $1,664,796
  Affiliates                          393,153         392,165
  Other                                25,025         170,000
Unearned insurance premiums
  and commissions                     134,417         143,478
Insurance  claims  and 
  policy  reserves                     33,060          30,566
Accrued interest payable              100,294          93,344
Other payables to affiliates           46,574          13,815
Other liabilities                     307,305         228,557

Long-term debt:
  Senior                            5,288,524       5,219,413
  Subordinated                          2,000           2,000

          Total long-term debt      5,290,524       5,221,413

          Total liabilities         7,955,883       7,958,134



Stockholder's equity:
  Common stock without par value
    (authorized 1,000 shares,
     issued 1,000 shares)               3,855           3,855
  Additional paid in capital          185,410         185,410
  Retained earnings                 1,226,108       1,167,418
  Accumulated other 
    comprehensive income               12,027           7,107

      Total stockholder's equity    1,427,400       1,363,790

          Total liabilities and
          stockholder's equity     $9,383,283      $9,321,924

</TABLE>





See accompanying notes to consolidated financial statements.


<PAGE 4>
                     NORWEST FINANCIAL, INC.
                                
         Statements of Consolidated Earnings (Unaudited)
                                
                     (Thousands of Dollars)

<TABLE>
<CAPTION>

                                    Three Months Ended March 31,

                                      1998             1997
Income:
<S>                                 <C>             <C>
  Finance charges and interest      $356,463        $301,364

  Insurance premiums and commissions  35,775          35,178

  Other income                        54,913          47,913

    Total income                     447,151         384,455


Expenses:

  Operating expenses                 164,240         130,694

  Interest and debt expense          114,350          92,879

  Provision for credit losses         67,176          54,749

  Insurance losses and loss expenses  10,788           9,274

    Total expenses                   356,554         287,596

    Earnings before income taxes      90,597          96,859

Income taxes                          31,907          34,082

    Net income                      $ 58,690        $ 62,777

</TABLE>




See accompanying notes to consolidated financial statements.


<PAGE 5>
                     NORWEST FINANCIAL, INC.
                                
   Consolidated Statements of Comprehensive Income (Unaudited)
                                
                     (Thousands of Dollars)

<TABLE>
<CAPTION>

                                        Three Months Ended March 31,
        
                                            1998            1997
        
<S>                                     <C>                <C>
Net income                              $58,690            $62,777

Other comprehensive income,
  before income taxes:
  Unrealized gains(losses) on
    securities available-for-sale:
      Unrealized gains (losses)
        arising during the period         8,265             (9,190)
      Less:  reclassification 
        adjustment for gains
        included in net income            1,569              1,434

                                          6,696            (10,624)

    Foreign currency translation
      adjustment                            474             (1,198)

      Other comprehensive income before
        income taxes                      7,170            (11,822)

    Income tax expense (benefit) related 
      to components of other 
      comprehensive income                2,250             (3,626)

    Other comprehensive income (loss),
      net of income taxes                 4,920             (8,196)

    Comprehensive income                $63,610            $54,581

</TABLE>















See accompanying notes to consolidated financial statements.


<PAGE 6>
                     NORWEST FINANCIAL, INC.
                                
        Statements of Consolidated Cash Flows (Unaudited)
                                
                     (Thousands of Dollars)
<TABLE>
<CAPTION>

                                                  Three Months Ended March 31,

                                                      1998             1997
<S>                                             <C>              <C>
Cash flows from operating activities:
  Net earnings                                  $    58,690      $    62,777
  Adjustments to reconcile net earnings to
    net cash flows from operating activities:
      Provision for credit losses                    67,176           54,749
      Depreciation and amortization                  10,961            6,995
      Deferred income taxes                           1,304           (2,280)
      Other assets                                    9,065          (16,436)
      Unearned insurance premiums and
       commissions                                   (9,061)          (5,439)
      Insurance claims and policy reserves            2,494             (816)
      Accrued interest payable                        6,950            5,795
      Other payables to affiliates                   32,759           30,646
      Other liabilities                              78,748           17,843

Net cash flows from operating activities            259,086          153,834

Cash flows from investing activities:
  Finance receivables:
      Principal collected                         1,535,671        1,338,642
      Receivables originated or purchased        (1,728,930)      (1,383,042)
  Proceeds from sales of securities                  27,462           26,701
  Proceeds from maturities of securities             37,990           18,956
  Purchases of securities                          (101,859)         (80,093)
  Net additions to property and equipment           (20,817)          (6,262)
  Net decrease (increase) in notes
    receivable - affiliates                           5,550          (30,276)
  Other                                             159,222          150,229

Net cash flows from (used for)
  investing activities                              (85,711)          34,855

Cash flows from financing activities:
  Net decrease in loans
    payable - short-term                           (183,252)         (89,988)
  Proceeds from issuance of senior
    long-term debt                                   70,446           36,545
  Repayments of senior long-term debt                (3,724)        (150,000)
  Dividends paid                                                      (1,729)

Net cash flows used for financing activities       (116,530)        (205,172)

Net increase (decrease) in cash and
    cash equivalents                                 56,845          (16,483)

Cash and cash equivalents beginning of period        94,600          141,692

Cash and cash equivalents end of period         $   151,445      $   125,209


See accompanying notes to consolidated financial statements.


<PAGE 7>
                             NORWEST FINANCIAL, INC.
                                        
           Consolidated Statements of Stockholder's Equity (Unaudited)
                                        
                             (Thousands of Dollars)
                                        


</TABLE>
<TABLE>
<CAPTION>
                                                             Accumulated Other
                                                            Comprehensive Income
                                                                   Unrealized Gains
                                 Additional               Foreign   on Securities
                         Common   Paid In     Retained    Currency    Available-
                         Stock    Capital     Earnings   Translation    for-Sale       Total
<S>                     <C>      <C>        <C>          <C>           <C>           <C>         
Balance, 
  December 31, 1996     $3,855   $ 90,766   $  959,697    $(5,991)     $ 9,705       $1,058,032

Comprehensive income:
  Net income                                    62,777                                  62,777
  Other                                                    (1,198)      (6,998)         (8,196)

Dividends                                       (1,729)                                 (1,729)

Balance,
  March 31, 1997        $3,855    $ 90,766  $1,020,745    $(7,189)     $ 2,707       $1,110,884



Balance,
  December 31, 1997     $3,855    $185,410  $1,167,418    $(8,757)     $15,864       $1,363,790

Comprehensive income:
  Net income                                    58,690                                   58,690
  Other                                                       474        4,446            4,920

Balance,
  March 31, 1998        $3,855    $185,410  $1,226,108    $(8,283)     $20,310       $1,427,400


</TABLE>




See accompanying notes to consolidated financial statements.


<PAGE 8>
                   NORWEST FINANCIAL, INC.
                              
   Notes to Consolidated Financial Statements (Unaudited)
                              

The  accompanying unaudited financial statements  and  notes
have   been  prepared  in  accordance  with  the  accounting
policies set forth in Norwest Financial, Inc.'s 1997  Annual
Report on Form  10-K and should be read in conjunction  with
the Notes to Consolidated Financial Statements therein.   In
the  opinion of management, all adjustments (none  of  which
were  other  than  normal recurring accruals)  necessary  to
present  fairly  the financial statements  for  the  periods
presented have been included.

1.   Principles of Consolidation.

The  consolidated financial statements include the  accounts
of  Norwest Financial, Inc. (the "Company") and subsidiaries
(collectively, "Norwest Financial").  Intercompany  accounts
and  transactions are eliminated.  The Company is a  wholly-
owned  subsidiary of Norwest Financial Services,  Inc.  (the
"Parent")  which  is  a wholly-owned subsidiary  of  Norwest
Corporation ("Norwest").

2.   Dividend Restrictions.

Certain  long-term  debt  instruments  restrict  payment  of
dividends on and acquisitions of the Company's common stock.
In  addition,  such debt instruments and the Company's  bank
credit  agreements  contain  certain  requirements   as   to
maintenance  of net worth (as defined).  Approximately  $777
million    of   consolidated   stockholder's   equity    was
unrestricted at March 31, 1998.

3.   Other Income.

Income  from affiliates was $14.8 million and $13.7  million
for  the  three  months  ended  March  31,  1998  and  1997,
respectively.

Interest  and  dividends from securities  available-for-sale
and  cash  equivalents were $17.8 million and $14.2  million
for  the  three  months  ended  March  31,  1998  and  1997,
respectively.

4.   Reclassifications.

Certain  amounts in the 1997 financial statements have  been
reclassified to conform to the presentation used in the 1998
financial statements.

5.   Change in Accounting Policy.

Effective January 1, 1998, the Company adopted Statement  of
Financial   Accounting   Standards   No.   130,   "Reporting
Comprehensive  Income"  ("FAS  130").   FAS   130   requires
disclosures  of the components of comprehensive  income  and
the  accumulated balance of other comprehensive income  with
total stockholder's equity.  The adoption of FAS 130 has not
had a material effect on the Company's financial statements.


<PAGE 9>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
      of Financial Condition and Results of Operations


Statements made in Management's Discussion and Analysis  may
be  forward-looking and are made pursuant to the safe harbor
provisions  of the Private Securities Litigation Reform  Act
of  1995.   Forward-looking statements address  management's
present  expectations about future performance  and  involve
inherent  risks  and uncertainties.  A number  of  important
factors  (some  of  which are beyond the Company's  control)
could  cause actual results to differ materially from  those
in  the  forward-looking statements.  Those factors  include
the  economic environment, competition, products and pricing
in  the  geographic and business areas in which the  Company
conducts its operations, prevailing interest rates,  changes
in  government regulations and policies affecting  financial
services   companies,  credit  quality   and   credit   risk
management,   acquisitions,  and  integration  of   acquired
businesses.

Effective August 31, 1997, Norwest, through its wholly-owned
subsidiary,  Fidelity  Acceptance  Holding,  Inc.  ("FAHI"),
acquired  Fidelity Acceptance Corporation.  The  acquisition
was accounted for as a purchase.  Funding necessary for this
acquisition   (totaling  approximately  $1.1  billion)   was
provided  to  FAHI by the Company.  Effective  September  2,
1997,   Norwest   made   a  capital  contribution,   without
consideration,  of all of the issued and outstanding  shares
of  capital  stock  of  FAHI  to  the  Parent.   Immediately
thereafter, the Parent made a capital contribution,  without
consideration, of all the issued and outstanding  shares  of
capital   stock  of  FAHI  to  the  Company.   This  capital
contribution  was accounted for a merger of interests  under
common   control.   The  principal  business   of   Fidelity
Acceptance Corporation and its subsidiaries ("Fidelity")  is
purchasing  sales finance contracts directly from automobile
dealers  and  making  direct loans secured  by  automobiles.
Fidelity  operated 147 branch offices in 31 states and  Guam
and  had  approximately $1.1 billion in finance  receivables
outstanding at the time of the contribution.

Norwest Financial's total income (revenue) increased 16% for
the  first  three months ($447.2 million in the first  three
months  of  1998 compared with $384.5 million in  the  first
three  months  of 1997).  Excluding Fidelity,  total  income
increased 2% for the first three months of 1998.



<PAGE 10>


                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Continued


Income  from finance charges and interest increased 18%  for
the  first  three months ($356.5 million in the first  three
months  of  1998 compared with $301.4 million in  the  first
three  months  of  1997).  Income from finance  charges  and
interest remained unchanged excluding Fidelity.  Changes  in
income  from  finance charges and interest result  primarily
from  (1)  changes  in  the amount  of  finance  receivables
outstanding and (2) changes in the rate of charge  on  those
receivables.    In   total,  average   finance   receivables
outstanding in first three months of 1998 increased 20% from
the first three months of 1997; average consumer receivables
outstanding   increased   22%   while   average   commercial
receivables  outstanding declined 2%.   Excluding  Fidelity,
average  finance receivables outstanding in the first  three
months  of 1998 increased 3% from the first three months  of
1997.

<TABLE>
<CAPTION>
                                      Three Months Ended March 31,

Rate of charge on finance receivables:        1998       1997
<S>                                          <C>         <C>
     Consumer                                20.58%      20.96%
     Commercial                              13.79       13.77
     Total                                   20.12       20.36

</TABLE>
The increase in income from finance charges and interest was
due  to  growth  in average finance receivables  outstanding
offset  in  part by the decline in the rate of charge.   The
increase in average finance receivables was due primarily to
the addition of Fidelity receivables.

Insurance  premiums  and  commissions  increased  2%  ($35.8
million  in  the  first three months of 1998  compared  with
$35.2  million in the first three months of 1997.)   Changes
in  insurance premiums and commissions generally  correspond
to changes in average consumer finance loans outstanding not
secured  by  real estate and average credit card receivables
outstanding.  Average consumer finance loans outstanding not
secured  by  real estate and average credit card receivables
outstanding increased 17% in the first three months of  1998
compared with the first three months of 1997.  This increase
was  due  primarily to the addition of Fidelity.   Excluding
Fidelity, average consumer finance loans not secured by real
estate  and credit card receivables decreased 2%.  Insurance
premiums and commissions in Fidelity during the first  three
months of 1998 were $.5 million.  Insurance losses and  loss
expenses  increased 16% ($10.8 million in  the  first  three
months of 1998 compared with $9.3 million in the first three
months of 1997).  The increase was primarily due to Canadian
business.

Other income increased 15% ($54.9 million in the first three
months  of  1998 compared with $47.9 million  in  the  first
three months of 1997).  The increase in other income was due
primarily  to  increases in investment income,  income  from
affiliates, and other fee income.

<PAGE 11>

                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Continued


Operating  expenses  increased 26% ($164.2  million  in  the
first  three months of 1998 compared with $130.7 million  in
the  first  three  months  of  1997).   Excluding  Fidelity,
operating  costs increased 13% in the first three months  of
1998.   The  increase  was  due primarily  to  increases  in
employee  compensation and benefits and other costs relating
to business expansion.  At March 31, 1998, Norwest Financial
was operating 1,226 consumer finance branch offices compared
with 1,094 at March 31, 1997.

Interest  and debt expense increased 23% ($114.4 million  in
the  first three months of 1998 compared with $92.9  million
in   the  first  three  months  of  1997).   Average   total
borrowings  increased  primarily  due  to  the  addition  of
Fidelity.   Changes  in  interest and  debt  expense  result
primarily  from  (1)  changes in the  amount  of  borrowings
outstanding and (2) changes in the cost of those borrowings.
Average  total  outstanding borrowings in  the  first  three
months of 1998 increased 24% from the first three months  of
1997.

                               Three Months Ended March 31,


Costs of funds:                     1998          1997

     Short-term                     5.62%         5.03%
     Long-term                      6.74          6.85
     Total                          6.44          6.31

Changes in average debt outstanding generally correspond to
changes  in average finance receivables outstanding combined
with  the change in notes receivable - affiliates.   Average
finance   receivables  and  notes  receivable  -  affiliates
increased 20% from the first three months of 1997.

Provision for credit losses increased 23% ($67.2 million  in
the  first three months of 1998 compared with $54.7  million
in  the  first  three  months  of  1997).   Average  finance
receivables increased 20% in the first three months of 1998.
Net  write-offs  as a percentage of average net  receivables
outstanding increased to .93% in the first three  months  of
1998  compared with .88% in the first three months of  1997.
Excluding  Fidelity,  net  write-offs  as  a  percentage  of
average  net receivables outstanding were .79% in the  first
three months of 1998.  Management believes the allowance for
credit  losses at March 31, 1998, and December 31, 1997,  is
adequate   to   absorb  possible  losses  in   the   finance
receivables portfolio.

Federal  and state income taxes decreased 6% ($31.9  million
in  the  first  three  months of 1998  compared  with  $34.1
million  in the first three months of 1997).  The  effective
tax  rate was 35.2% for both the first three months of  1998
and 1997.


<PAGE 12>
                   NORWEST FINANCIAL, INC.
                              
            Management's Discussion and Analysis
 of Financial Condition and Results of Operations, Concluded


The Company and a Canadian subsidiary maintain bank lines of
credit  and  revolving  credit  agreements  to  provide   an
alternative  source of liquidity to support  the  commercial
paper  borrowings.  At March 31, 1998, lines of  credit  and
revolving  credit  agreements totaling $1,323  million  were
being  maintained at 33 unaffiliated banks.   None  of  this
credit was in use at the time.

The  Company and a Canadian subsidiary obtain long-term debt
capital  primarily from (1) the issuance of debt  securities
to  the  public  through underwriters on  a  firm-commitment
basis,  (2) the issuance of debt securities to institutional
investors,  and  (3) term borrowings from commercial  banks.
The  Company and a Canadian subsidiary also obtain long-term
debt  from the issuance of medium-term notes (which may have
maturities  ranging from nine months to  30  years)  through
underwriters (acting as agent or principal).

Norwest Financial anticipates the continued availability  of
borrowed funds, at prevailing interest rates, to provide for
Norwest Financial's growth in the foreseeable future.  Funds
are also generated internally from payments of principal and
interest    received   on   Norwest   Financial's    finance
receivables.

The  Company  has  experienced  slower  internal  growth  in
receivables  and a reduction in earned rate as a  result  of
prepayments and competitive pressures causing industry  loan
standards  and pricing to fall below levels which management
considers  prudent.  Management now estimates  that  Norwest
Financial's 1998 earnings will be approximately ten  percent
lower  than the amount earned in 1997.  Management  believes
it  is  important  to maintain financial discipline  and  is
confident of the Company's long-term growth prospects.








<PAGE 13>
                 PART II.  OTHER INFORMATION
                              
                   NORWEST FINANCIAL, INC.


Item 5.  Other Information.

             RATIOS OF EARNINGS TO FIXED CHARGES

The following table sets forth the ratios of earnings to
fixed charges of Norwest Financial, Inc. and its
subsidiaries for the periods indicated:

     Three 
     Months
     Ended                      Years Ended  December 31,
   March 31,
      1998            1997     1996     1995     1994    1993

      1.77            2.00     2.11     2.13     2.26    2.22

The  ratios of earnings to fixed charges have been  computed
by dividing net earnings plus fixed charges and income taxes
by  fixed  charges.  Fixed charges consist of  interest  and
debt  expense  plus one-third of rentals  (which  is  deemed
representative of the interest factor).


Item 6.  Exhibits and Reports on Form 8-K.

(a)  Exhibits:

Exhibit (12)   Computation  of ratios of earnings  to  fixed
               charges  for  the  years ended  December  31,
               1997, 1996, 1995, 1994 and 1993 and the three
               months ended March 31, 1998.

(b)  Reports on 8-K

No  reports  on Form 8-K were filed during the  quarter  for
which this report is filed.



                     S I G N A T U R E S

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  thereunto  duly
authorized.

                           NORWEST FINANCIAL, INC.

Date:  May 1, 1998
                           By  \S\   Eric Torkelson
                              Eric Torkelson
                              Vice President and Controller
                              (Principal Accounting Officer)