SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

                               FORM 10-Q



(Mark One)

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended               June 30, 2002

                                  OR

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________


                     Commission file number 1-6155


                 AMERICAN GENERAL FINANCE CORPORATION
        (Exact name of registrant as specified in its charter)



                 Indiana                            35-0416090
        (State of Incorporation)                 (I.R.S. Employer
                                                Identification No.)


 601 N.W. Second Street, Evansville, IN               47708
(Address of principal executive offices)           (Zip Code)


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



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    .

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 10-Q
with the reduced disclosure format.

At July 30, 2002, there were 10,160,012 shares of the registrant's
common stock, $.50 par value, outstanding.
<PAGE> 2

                      Part I - FINANCIAL INFORMATION


Item 1.  Financial Statements



           AMERICAN GENERAL FINANCE CORPORATION AND SUBSIDIARIES
                Condensed Consolidated Statements of Income
                                (Unaudited)



                                 Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                  2002        2001        2002        2001
                                           (dollars in thousands)

Revenues
  Finance charges               $412,979    $418,984    $826,661    $827,894
  Insurance                       48,050      50,203      93,550      98,281
  Other                           27,931      25,059      58,124      55,914

Total revenues                   488,960     494,246     978,335     982,089

Expenses
  Interest expense               137,134     156,966     273,086     324,204
  Operating expenses             137,797     136,094     278,621     268,001
  Provision for finance
    receivable losses             71,099      67,356     140,696     126,060
  Insurance losses and loss
    adjustment expenses           19,811      20,978      41,793      44,236

Total expenses                   365,841     381,394     734,196     762,501

Income before provision for
  income taxes                   123,119     112,852     244,139     219,588

Provision for Income Taxes        43,832      40,698      86,899      79,259


Net Income                      $ 79,287    $ 72,154    $157,240    $140,329




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 3

           AMERICAN GENERAL FINANCE CORPORATION AND SUBSIDIARIES
                   Condensed Consolidated Balance Sheets



                                                   June 30,     December 31,
                                                     2002            2001
                                                  (Unaudited)
                                                    (dollars in thousands)
Assets

Net finance receivables:
  Real estate loans                               $ 7,701,555    $ 7,444,484
  Non-real estate loans                             2,764,495      2,865,985
  Retail sales finance                              1,304,212      1,408,111

Net finance receivables                            11,770,262     11,718,580
Allowance for finance receivable losses              (440,263)      (438,860)
Net finance receivables, less allowance
  for finance receivable losses                    11,329,999     11,279,720

Investment securities                               1,193,950      1,142,186
Cash and cash equivalents                             161,213        175,492
Notes receivable from parent                          271,450        267,656
Other assets                                          544,566        582,572

Total assets                                      $13,501,178    $13,447,626


Liabilities and Shareholder's Equity

Long-term debt                                    $ 7,010,102    $ 6,300,171
Commercial paper                                    3,903,179      4,578,637
Insurance claims and policyholder
  liabilities                                         471,125        495,588
Other liabilities                                     506,890        441,280
Accrued taxes                                          57,827         86,023

Total liabilities                                  11,949,123     11,901,699

Shareholder's equity:
  Common stock                                          5,080          5,080
  Additional paid-in capital                          877,097        877,526
  Accumulated other comprehensive loss                (60,482)       (61,687)
  Retained earnings                                   730,360        725,008

Total shareholder's equity                          1,552,055      1,545,927

Total liabilities and shareholder's equity        $13,501,178    $13,447,626




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 4

            AMERICAN GENERAL FINANCE CORPORATION AND SUBSIDIARIES
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)



                                                        Six Months Ended
                                                            June 30,
                                                       2002          2001
                                                     (dollars in thousands)

Cash Flows from Operating Activities
Net income                                          $  157,240    $  140,329
Reconciling adjustments:
  Provision for finance receivable losses              140,696       126,060
  Depreciation and amortization                         72,162        69,594
  Deferral of finance receivable origination
    costs                                              (28,582)      (26,943)
  Deferred income tax charge                             8,322            96
  Change in other assets and other liabilities          69,733        96,652
  Change in insurance claims and policyholder
    liabilities                                        (24,463)      (12,073)
  Change in taxes receivable and payable               (29,191)       10,728
  Other, net                                            10,203         9,818
  Net cash provided by operating activities            376,120       414,258

Cash Flows from Investing Activities
  Finance receivables originated or purchased       (3,243,618)   (3,071,343)
  Principal collections on finance receivables       3,039,767     2,873,445
  Investment securities purchased                     (403,234)     (586,966)
  Investment securities called and sold                345,932       520,956
  Investment securities matured                         11,975         4,810
  Change in notes receivable from parent                (3,794)       (8,436)
  Change in premiums on finance receivables
    purchased and deferred charges                     (12,762)       (8,572)
  Other, net                                            (4,919)       (6,139)
Net cash used for investing activities                (270,653)     (282,245)

Cash Flows from Financing Activities
  Proceeds from issuance of long-term debt           1,195,057       596,869
  Repayment of long-term debt                         (487,457)     (348,675)
  Change in commercial paper                          (675,458)     (212,096)
  Dividends paid                                      (151,888)     (138,582)
Net cash used for financing activities                (119,746)     (102,484)

(Decrease) increase in cash and cash equivalents       (14,279)       29,529
Cash and cash equivalents at beginning of period       175,492       134,539
Cash and cash equivalents at end of period          $  161,213    $  164,068

Supplemental Disclosure of Cash Flow
  Information
    Income taxes paid                               $  106,665    $   68,815
    Interest paid                                   $  269,546    $  332,668




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 5

           AMERICAN GENERAL FINANCE CORPORATION AND SUBSIDIARIES
         Condensed Consolidated Statements of Comprehensive Income
                                (Unaudited)



                                  Three Months Ended       Six Months Ended
                                       June 30,                June 30,
                                   2002        2001        2002       2001
                                           (dollars in thousands)


Net income                       $ 79,287    $ 72,154    $157,240   $140,329

Other comprehensive (loss) gain:

  Net unrealized (losses) gains:
    Investment securities          15,642     (15,276)      5,400     (4,861)
    Interest rate swaps:
      Transition adjustment          -           -           -       (42,103)
      Current period              (62,560)     21,417     (61,424)   (29,417)
    Minimum pension liability        -           -           -          (535)

  Income tax effect:
    Investment securities          (4,826)      5,348      (1,242)     1,703
    Interest rate swaps:
      Transition adjustment          -           -           -        14,736
      Current period               21,896      (7,496)     21,499     10,297
    Minimum pension liability        -           -           -           187

  Net unrealized (losses) gains,
    net of tax                    (29,848)      3,993     (35,767)   (49,993)

  Reclassification adjustments
    for realized losses included
    in net income:
      Investment securities         2,952       4,987       1,684      3,470
      Interest rate swaps          26,805      12,498      55,196     16,894

  Income tax effect:
    Investment securities          (1,033)     (1,746)       (589)    (1,215)
    Interest rate swaps            (9,382)     (4,374)    (19,319)    (5,913)

  Realized losses included in
    net income, net of tax         19,342      11,365      36,972     13,236

Other comprehensive (loss) gain,
  net of tax                      (10,506)     15,358       1,205    (36,757)


Comprehensive income             $ 68,781    $ 87,512    $158,445   $103,572




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 6

           AMERICAN GENERAL FINANCE CORPORATION AND SUBSIDIARIES
           Notes to Condensed Consolidated Financial Statements
                               June 30, 2002



Note 1.  Principles of Consolidation

American General Finance Corporation will be referred to as "AGFC" or
collectively with its subsidiaries, whether directly or indirectly
owned, as the "Company" or "we".  We prepared our condensed
consolidated financial statements using accounting principles generally
accepted in the United States for interim periods.  The statements
include the accounts of AGFC and its subsidiaries, all of which are
wholly owned.  We eliminated all intercompany items.  AGFC is a wholly
owned subsidiary of American General Finance, Inc. (AGFI).  AGFI is a
wholly owned subsidiary of American General Corporation (American
General).  American General is a wholly owned subsidiary of American
International Group, Inc. (AIG).



Note 2.  Adjustments and Reclassifications

We made all adjustments, consisting only of normal recurring
adjustments, that we considered necessary for a fair statement of the
Company's condensed consolidated financial statements.  These
statements should be read in conjunction with the consolidated
financial statements and related notes included in our Annual Report on
Form 10-K for the year ended December 31, 2001.

To conform to the 2002 presentation, we reclassified certain items in
the prior period.



Note 3.  Accounting Change

On January 1, 2002, we adopted Statement of Financial Accounting
Standards (SFAS) 142, "Goodwill and Other Intangible Assets."  SFAS
142 provides that goodwill and other intangible assets with indefinite
lives are no longer to be amortized.  These assets are to be reviewed
for impairment annually, or more frequently if impairment indicators
are present.  Separable intangible assets that have finite lives will
continue to be amortized over their useful lives.  The amortization
provisions of SFAS 142 apply to goodwill and intangible assets acquired
after June 30, 2001.  Amortization of goodwill and intangible assets
acquired prior to July 1, 2001 continued through December 31, 2001.
During first quarter 2002, we determined that the required impairment
testing related to the Company's goodwill and other intangible assets
did not require a write-down of any such assets.
<PAGE> 7

The impact of goodwill amortization on net income was as follows:

                                 Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                 2002          2001      2002          2001
                                           (dollars in thousands)

Reported net income             $ 79,287    $ 72,154    $157,240    $140,329
Goodwill amortization,
  net of tax                        -          1,048        -          2,085

Adjusted net income             $ 79,287    $ 73,202    $157,240    $142,414



Note 4.  Finance Receivables

Components of net finance receivables by type were as follows:

                                              June 30, 2002
                               Real        Non-real      Retail
                              Estate        Estate        Sales
                               Loans         Loans       Finance     Total
                                         (dollars in thousands)

Gross receivables            $7,690,921  $3,095,472  $1,465,579  $12,251,972
Unearned finance charges
  and points and fees          (147,581)   (416,805)   (173,147)    (737,533)
Accrued finance charges          65,339      38,315      13,178      116,832
Deferred origination costs       11,489      36,723        -          48,212
Premiums, net of discounts       81,387      10,790      (1,398)      90,779

Total                        $7,701,555  $2,764,495  $1,304,212  $11,770,262


                                            December 31, 2001
                               Real        Non-real      Retail
                              Estate        Estate        Sales
                               Loans         Loans       Finance     Total
                                         (dollars in thousands)

Gross receivables            $7,433,025  $3,218,884  $1,593,357  $12,245,266
Unearned finance charges
  and points and fees          (148,722)   (443,591)   (201,875)    (794,188)
Accrued finance charges          67,745      41,948      15,658      125,351
Deferred origination costs       10,410      36,807        -          47,217
Premiums, net of discounts       82,026      11,937         971       94,934

Total                        $7,444,484  $2,865,985  $1,408,111  $11,718,580
<PAGE> 8

Note 5.  Allowance for Finance Receivable Losses

Changes in the allowance for finance receivable losses were as follows:

                                 Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                 2002          2001      2002          2001
                                           (dollars in thousands)

Balance at beginning of period  $440,253    $375,631    $438,860    $372,825
Provision for finance
  receivable losses               71,099      67,356     140,696     126,060
Allowance related to net
  acquired (sold) receivables         10       6,705       1,197       9,511
Charge-offs, net of recoveries   (71,099)    (61,356)   (140,490)   (120,060)

Balance at end of period        $440,263    $388,336    $440,263    $388,336



Note 6.  Derivative Financial Instruments

To protect against interest rate fluctuations, AGFC uses derivative
financial instruments in managing the cost of its debt.  AGFC has
generally limited its use of derivative financial instruments to
interest rate swap agreements to reduce its exposure to market interest
rate increases by synthetically converting certain short-term or
floating-rate debt to a long-term fixed-rate.

We recognize the fair values of interest rate swap agreements in the
consolidated balance sheets.  Our interest rate swap agreements are
designated and qualify as cash flow hedges.  We report the effective
portion of the gain or loss on the instruments as a component of other
comprehensive income.  We do not have any ineffectiveness to report in
the consolidated statements of income.

As an alternative to fixed-rate term debt, our interest rate swap
agreements did not have a material effect on other revenues, interest
expense, or net income during the six months ended June 30, 2002 or
2001.



Note 7.  Segment Information

We have two business segments: consumer finance and insurance.  Our
segments are defined by the type of financial service product offered.
The consumer finance segment makes home equity loans, originates
secured and unsecured consumer loans, extends lines of credit, and
purchases retail sales contracts from, and provides revolving retail
services for, retail merchants.  We also purchase private label
receivables originated by an affiliate of ours under a participation
agreement.  To supplement our lending and retail sales financing
activities, we purchase portfolios of real estate loans, non-real
estate loans, and retail sales finance receivables.  We also offer
credit and non-credit insurance to our consumer finance customers.  The
insurance segment writes and assumes credit and non-credit insurance
through products that are offered principally by the consumer finance
segment.

Because segment information is not calculated separately for the
Company, the remaining information is for AGFI and its subsidiaries.
<PAGE> 9

The following tables display information about AGFI and its
subsidiaries' segments as well as a reconciliation of their total
segment pretax income to their condensed consolidated financial
statement amounts.

For the three months ended June 30, 2002:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $442,931       $   -          $442,931
    Insurance                     254         47,796         48,050
    Other                      (4,081)        23,058         18,977
  Intercompany                 20,077        (19,308)           769
Pretax income                 111,078         23,317        134,395


For the three months ended June 30, 2001:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $447,964       $   -          $447,964
    Insurance                     279         49,924         50,203
    Other                      (2,215)        24,646         22,431
  Intercompany                 20,648        (19,848)           800
Pretax income                 107,034         25,711        132,745


For the six months ended June 30, 2002:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $890,414       $   -          $890,414
    Insurance                     519         93,031         93,550
    Other                      (8,342)        44,957         36,615
  Intercompany                 38,806        (37,286)         1,520
Pretax income                 229,842         42,033        271,875


For the six months ended June 30, 2001:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $887,623       $   -          $887,623
    Insurance                     560         97,721         98,281
    Other                      (4,670)        47,553         42,883
  Intercompany                 40,450        (38,880)         1,570
Pretax income                 213,410         46,012        259,422
<PAGE> 10

Reconciliations of total segment pretax income to the condensed
consolidated financial statement amounts were as follows:

                          Three Months Ended       Six Months Ended
                               June 30,                June 30,
                          2002          2001      2002          2001
                                    (dollars in thousands)
Pretax income:
  Segments               $134,395    $132,745    $271,875    $259,422
  Corporate                (7,050)    (18,455)    (23,754)    (43,805)
  Adjustments              (4,415)     (5,239)     (6,575)     (4,319)

Consolidated pretax
  income                 $122,930    $109,051    $241,546    $211,298


Adjustments for pretax income include certain administrative expenses
allocated from AIG, realized gains (losses) and certain other
investment revenue, and pension expense.  Adjustments for pretax income
in 2001 also included the amortization of goodwill.



Note 8.  Legal Contingencies

AGFC and certain of its subsidiaries are parties to various lawsuits
and proceedings, including certain class action claims, arising in the
ordinary course of business.  In addition, many of these proceedings
are pending in jurisdictions that permit damage awards disproportionate
to the actual economic damages alleged to have been incurred.  Based
upon information presently available, we believe that the total amounts
that will ultimately be paid arising from these lawsuits and
proceedings will not have a material adverse effect on our consolidated
results of operations or financial position.  However, the frequency of
large damage awards, including large punitive damage awards that bear
little or no relation to actual economic damages incurred by plaintiffs
in some jurisdictions, continues to create the potential for an
unpredictable judgment in any given suit.
<PAGE> 11

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.


                      FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and our other publicly available
documents may include, and the Company's officers and representatives
may from time to time make, statements which may constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.  These statements are not historical
facts but instead represent only our belief regarding future events,
many of which are inherently uncertain and outside of our control.
These statements may address, among other things, the Company's
strategy for growth, product development, regulatory approvals, market
position, financial results and reserves. The Company's actual results
and financial condition may differ, possibly materially, from the
anticipated results and financial condition indicated in these forward-
looking statements. Forward-looking statements involve risks and
uncertainties including, but not limited to, the following:

     *  changes in general economic conditions, including the
        performance of financial markets, interest rates, and the
        level of personal bankruptcies;
     *  customer responsiveness to both products and distribution
        channels or changes in contractual delinquencies, collateral
        values, or credit losses;
     *  competitive, regulatory, accounting, or tax changes that
        affect the cost of, or demand for, our products or the manner
        in which we conduct business;
     *  adverse litigation results or resolution of litigation or any
        governmental inquiries or investigations;
     *  the formation of strategic alliances or business combinations
        among our competitors or our business partners;
     *  changes in our ability to attract and retain employees or key
        executives; and
     *  natural events affecting Company facilities.

Readers are also directed to other risks and uncertainties discussed in
other documents we file with the Securities and Exchange Commission.
We are under no obligation to (and expressly disclaim any such
obligation to) update or alter any forward-looking statement, whether
written or oral, that may be made from time to time, whether as a
result of new information, future events or otherwise.



                     CRITICAL ACCOUNTING POLICIES

We believe the amount of the allowance for finance receivable losses is
the most significant estimate we make.  We establish the allowance for
finance receivable losses primarily through the provision for finance
receivable losses charged to expense.  We periodically evaluate our
finance receivable portfolio to determine the appropriate level of the
allowance for finance receivable losses.  This policy is discussed in
greater detail in Note 2. of the Notes to Consolidated Financial
Statements in our Annual Report on Form 10-K for the year ended
December 31, 2001.  In our opinion, the allowance is adequate to absorb
losses inherent in our existing portfolio.
<PAGE> 12

                    LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our sources of funds include operations, issuances of long-term debt,
short-term borrowings in the commercial paper market, and borrowings
from banks under credit facilities.  AGFC has also historically
received capital contributions from its parent to support finance
receivable growth and maintain targeted leverage.

Principal sources and uses of cash were as follows:

                                                Six Months Ended
                                                    June 30,
                                              2002           2001
                                             (dollars in millions)
Principal sources of cash:
  Operations                                 $376.1         $414.3
  Net issuance of debt                         32.1           36.1

  Total                                      $408.2         $450.4


Principal uses of cash:
  Net originations and purchases
    of finance receivables                   $203.9         $197.9
  Dividends paid                              151.9          138.6

  Total                                      $355.8         $336.5


We believe that our overall sources of liquidity will continue to be
sufficient to satisfy our foreseeable financial obligations and
operational requirements.  The principal risk factors that could
decrease our sources of liquidity are delinquent payments from our
customers and our inability to access capital markets.  The principal
factors that could increase our cash needs are significant increases in
net originations and purchases of finance receivables.  We intend to
mitigate liquidity risk factors by continuing to operate the Company
within the following strategies:

     *  maintain a finance receivable portfolio comprised mostly of
        real estate loans, which generally represent a lower risk of
        customer non-payment;
     *  originate and monitor finance receivables with our proprietary
        credit risk management system;
     *  maintain an investment securities portfolio of predominantly
        investment grade, liquid securities; and
     *  maintain a capital structure appropriate to our asset base.

Consistent execution of our business strategies should result in
continued profitability, strong credit ratings, and investor
confidence.  These results should allow continued access to capital
markets for issuances of our commercial paper and term debt.  We
maintain committed bank credit facilities to provide an additional
source of liquidity for needs potentially not met through capital
markets.
<PAGE> 13

Capital Resources
                                                   June 30,
                                             2002           2001
                                            (dollars in millions)

Long-term debt                             $ 7,010.1     $ 5,917.5
Commercial paper                             3,903.2       4,634.3

Total debt                                  10,913.3      10,551.8
Equity                                       1,552.1       1,751.3

Total capital                              $12,465.4     $12,303.1

Net finance receivables                    $11,770.3     $11,498.0
Debt to tangible equity ratio                  7.50x         6.49x


Our capital varies with the level of net finance receivables.  The
capital mix of debt and equity is based primarily upon maintaining
leverage that supports cost-effective funding.

We issue a combination of fixed-rate debt, principally long-term, and
floating-rate debt, principally short-term.  AGFC obtains our fixed-
rate funding through public issuances of long-term debt with maturities
generally ranging from two to ten years. AGFC obtains most of our
floating-rate funding effectively through sales and refinancing of
commercial paper.  Commercial paper, with maturities ranging from 1 to
270 days, is sold to banks, insurance companies, corporations, and
other accredited investors.  AGFC also sells extendible commercial
notes with initial maturities of up to 90 days, which may be extended
by AGFC to 390 days.  At June 30, 2002, commercial paper included $49.8
million of extendible commercial notes.

Until fourth quarter 2001, AGFC paid dividends to (or received capital
contributions from) AGFI to manage our leverage of debt to tangible
equity (equity less goodwill and accumulated other comprehensive
income) to 6.5 to 1.  At the end of fourth quarter 2001, following
discussions with credit rating agencies, we increased our leverage
target to 7.5 to 1.  This increase was based on our success with
managing credit risk and maintaining a lower risk finance receivable
portfolio.  We intend to continue these practices.  An AGFC financing
agreement limits the amount of dividends AGFC may pay.  This agreement
has not prevented us from managing our capital to targeted leverage.


Credit Facilities

We maintain credit facilities to support the issuance of commercial
paper and to provide an additional source of funds for operating
requirements.  At June 30, 2002, AGFC was an eligible borrower under
committed credit facilities extended to American General and certain of
its subsidiaries (the "shared committed facilities").  At June 30,
2002, the shared committed facilities totaled $5.2 billion and annual
commitment fees ranged between 0.04% and 0.06%.  We paid only an
allocated portion of the commitment fees for the shared committed
facilities.  In July 2002, AGFC, AGFI, and American General terminated
these shared committed credit facilities and AGFC established its own
committed credit facilities totaling $3.0 billion, including a facility
under which AGFI is an eligible borrower for up to $300 million. The
annual commitment fees for the new facilities currently average 0.07%
based upon AGFC's long-term credit ratings.
<PAGE> 14

At June 30, 2002, AGFC and certain of its subsidiaries also have
uncommitted credit facilities (including shared uncommitted facilities
with AGFI) totaling $51 million which could be increased depending upon
lender ability to participate its loans under the facilities.

Available borrowings under all facilities are reduced by any
outstanding borrowings.  There were no amounts outstanding at June 30,
2002 or June 30, 2001.  AGFC guarantees its subsidiary borrowings under
uncommitted credit facilities.  AGFC does not guarantee any borrowings
of AGFI.



         ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION


Net Income
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Net income                $ 79.3        $ 72.2    $157.2        $140.3
Return on average
  assets (annualized)      2.37%         2.17%     2.35%         2.11%
Return on average
  equity (annualized)     20.24%        16.47%    20.04%        15.93%
Ratio of earnings to
  fixed charges                                    1.87x         1.66x


Net income increased $7.1 million, or 10%, for the three months ended
June 30, 2002 and $16.9 million, or 12%, for the six months ended June
30, 2002 when compared to the same periods in 2001.  See Note 7. of the
Notes to Condensed Consolidated Financial Statements for information on
the results of the Company's business segments.

Net income for 2002 did not include goodwill amortization due to the
adoption of SFAS 142 on January 1, 2002.  Net income included goodwill
amortization of $1.6 million for the three months and $3.2 million for
the six months ended June 30, 2001.

Factors that specifically affected the Company's operating results were
as follows:


Finance Charges
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Finance charges           $   413.0  $   419.0    $   826.7  $   827.9
Average net receivables   $11,677.0  $11,439.6    $11,671.7  $11,422.1
Yield                        14.18%     14.68%       14.26%     14.59%
<PAGE> 15

Finance charges decreased $6.0 million, or 1%, for the three months
ended June 30, 2002 and remained near the same for the six months ended
June 30, 2002 when compared to the same periods in 2001.  The decrease
for the three months ended June 30, 2002 when compared to the same
period in 2001 was due to lower yield, partially offset by higher
average net receivables.

Average net receivables by type were as follows:

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Real estate loans         $ 7,602.1  $ 7,195.0    $ 7,540.3  $ 7,137.3
Non-real estate loans       2,757.7    2,899.4      2,781.2    2,911.1
Retail sales finance        1,317.2    1,345.2      1,350.2    1,373.7

  Total                   $11,677.0  $11,439.6    $11,671.7  $11,422.1


Average net receivables increased $237.4 million, or 2%, for the three
months ended June 30, 2002 and $249.6 million, or 2%, for the six
months ended June 30, 2002 when compared to the same periods in 2001
reflecting real estate loan growth.  We tightened underwriting
standards last year and discontinued relationships with unprofitable
retail merchants.  The low interest rate environment has caused higher
than normal real estate loan liquidations, although this trend has
slowed recently.  These factors, coupled with a sluggish economy since
mid-2001, have limited finance receivable growth.

Yield by type of finance receivable was as follows:

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001

Real estate loans         11.33%        12.01%    11.35%        11.88%
Non-real estate loans     21.75         21.53     21.84         21.53
Retail sales finance      14.76         14.21     14.84         13.93
  Total                   14.18         14.68     14.26         14.59


Yield decreased 50 basis points for the three months ended June 30,
2002 and 33 basis points for the six months ended June 30, 2002 when
compared to the same periods in 2001 reflecting a lower real estate
loan yield resulting from the low interest rate environment.


Insurance Revenues
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Insurance revenues        $48.1          $50.2    $93.6          $98.3
Premiums earned           $47.5          $49.5    $92.5          $97.2
Insurance revenues
  (annualized) as a
  percentage of average
  net receivables         1.65%          1.76%    1.60%          1.72%
<PAGE> 16

Insurance revenues decreased $2.1 million, or 4%, for the three months
ended June 30, 2002 and $4.7 million, or 5%, for the six months ended
June 30, 2002 when compared to the same periods in 2001 primarily due
to lower earned premiums.  Earned premiums decreased due to lower
premium volume.

Insurance revenues as a percentage of average net receivables decreased
for the three months and six months ended June 30, 2002 when compared
to the same periods in 2001 reflecting a higher proportion of average
net receivables that are real estate loans.  Our experience is that
customers purchase fewer insurance products on real estate loans than
on non-real estate loans.


Other Revenues
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Other revenues            $27.9          $25.1    $58.1          $55.9
Investment revenue        $21.2          $19.1    $44.1          $43.3
Interest revenue - notes
  receivable from AGFI    $ 3.9          $ 5.5    $ 8.1          $11.8


Other revenues increased $2.8 million, or 11%, for the three months
ended June 30, 2002 and $2.2 million, or 4%, for the six months ended
June 30, 2002 when compared to the same periods in 2001 primarily due
to higher investment revenue and service fee income with a non-
subsidiary affiliate, partially offset by lower interest revenue on
notes receivable from AGFI.  The increase in investment revenue for the
three and six months ended June 30, 2002 when compared to the same
periods in 2001 was primarily due to lower realized losses.  The
decrease in interest revenue on notes receivable from AGFI for the
three and six months ended June 30, 2002 when compared to the same
periods in 2001 reflected significantly lower interest rates.


Interest Expense
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Interest expense          $   137.1  $   157.0    $   273.1  $   324.2
Average borrowings        $10,755.8  $10,394.1    $10,754.1  $10,402.7
Borrowing cost                5.10%      6.05%        5.08%      6.25%


Interest expense decreased $19.9 million, or 13%, for the three months
ended June 30, 2002 and $51.1 million, or 16%, for the six months ended
June 30, 2002 when compared to the same periods in 2001 primarily due
to lower borrowing cost, partially offset by higher average borrowings.
Borrowing cost decreased 95 basis points for the three months ended
June 30, 2002 and 117 basis points for the six months ended June 30,
2002 when compared to the same periods in 2001.  Federal Reserve
actions lowered the federal funds rate a total of 475 basis points
between December 2000 and December 2001 resulting in a low market rate
environment.  These actions resulted in lower rates on short-term and
long-term debt.  Average borrowings increased $361.7 million, or 3%,
for the three months ended June 30, 2002 and $351.4 million, or 3%, for
<PAGE> 17

the six months ended June 30, 2002 when compared to the same periods in
2001 primarily to support real estate loan growth and our increase in
leverage.


Operating Expenses
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Operating expenses        $137.8        $136.1    $278.6        $268.0
Operating expenses
  (annualized) as a
  percentage of average
  net receivables          4.72%         4.76%     4.77%         4.69%


Operating expenses increased $1.7 million, or 1%, for the three months
ended June 30, 2002 and $10.6 million, or 4%, for the six months ended
June 30, 2002 when compared to the same periods in 2001 primarily due
to higher salaries and litigation expenses, partially offset by the
absence of goodwill amortization in 2002.  The increase in salaries
reflected higher competitive compensation.  The increase in operating
expenses as a percentage of average net receivables for the six months
ended June 30, 2002 when compared to the same period in 2001 reflected
higher operating expenses compared to moderate finance receivable
growth.


Provision for Finance Receivable Losses
                                                      At or for the
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Provision for finance
  receivable losses       $71.1          $67.4    $140.7        $126.1
Net charge-offs           $71.1          $61.4    $140.7        $120.1
60 day+ delinquency                               $446.1        $397.1
Allowance for finance
  receivable losses                               $440.3        $388.3


Provision for finance receivable losses increased $3.7 million, or 6%,
for the three months ended June 30, 2002 and $14.6 million, or 12%, for
the six months ended June 30, 2002 when compared to the same periods in
2001 primarily due to higher net charge-offs.

Charge-off ratios by type of finance receivable were as follows:

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001

Real estate loans         0.65%          0.67%    0.65%          0.65%
Non-real estate loans     6.96           5.48     6.77           5.42
Retail sales finance      3.31           2.85     3.18           2.61
  Total                   2.44           2.15     2.41           2.10
<PAGE> 18

The increase in the charge-off ratio for the three months and six
months ended June 30, 2002 when compared to the same periods in 2001
was primarily due to higher net charge-offs on non-real estate loans
and retail sales finance receivables reflecting slowing economic
conditions.

Delinquency ratios by type of finance receivable were as follows:

                                             June 30,
                                       2002           2001

Real estate loans                     3.27%           3.09%
Non-real estate loans                 5.09            4.38
Retail sales finance                  2.55            1.95
  Total                               3.64            3.29


The increase in the delinquency ratio at June 30, 2002 when compared to
June 30, 2001 also reflected slowing economic conditions.

Statistics relating to the allowance for finance receivable losses were
as follows:
                                                      At or for the
                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001

Allowance ratio                                   3.74%          3.38%
Charge-off coverage       1.55x          1.58x    1.56x          1.62x


We periodically evaluate our finance receivable portfolio to determine
the appropriate level of the allowance for finance receivable losses.
We believe the amount of the allowance for finance receivable losses is
the most significant estimate we make.  In our opinion, the allowance
is adequate to absorb losses inherent in our existing portfolio.  The
increase in the allowance as a percentage of net finance receivables at
June 30, 2002 when compared to June 30, 2001 was primarily due to:

     *  increases to the allowance for finance receivable losses
        through the provision for finance receivable losses during the
        last twelve months totaling $20.2 million (this increase was
        necessary in response to our increased delinquency and net
        charge-offs and the higher levels of both unemployment and
        personal bankruptcies in the United States);
     *  an increase to the allowance for finance receivable losses
        through other charges in third quarter 2001 totaling $25.0
        million; and
     *  increases to the allowance for finance receivable losses
        during the last twelve months totaling $6.7 million resulting
        from applying purchase accounting to net portfolio
        acquisitions.

Charge-off coverage, which compares the allowance for finance
receivable losses to net charge-offs (annualized), decreased slightly
for the three months and six months ended June 30, 2002 when compared
to the same periods in 2001 reflecting higher net charge-offs,
substantially offset by increases to allowance for finance receivable
losses.
<PAGE> 19

Insurance Losses and Loss Adjustment Expenses

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Claims incurred           $19.4          $20.3    $43.4          $44.2
Change in benefit
  reserves                  0.4            0.7     (1.6)            -

Insurance losses and
  loss adjustment
  expenses                $19.8          $21.0    $41.8          $44.2


Insurance losses and loss adjustment expenses decreased $1.2 million,
or 6%, for the three months ended June 30, 2002 and $2.4 million, or
6%, for the six months ended June 30, 2002 when compared to the same
periods in 2001 due to decreases in provision for future benefits and
claims.  The provision for future benefits decreased $.3 million for
the three months ended June 30, 2002 and $1.6 million for the six
months ended June 30, 2002 due to fewer policies in force.  Claims
decreased $.9 million for the three months ended June 30, 2002 and $.8
million for the six months ended June 30, 2002 primarily due to
decreased loss experience.


Provision for Income Taxes

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
                           2002          2001      2002          2001
                                      (dollars in millions)

Provision for income
  taxes                   $ 43.8        $ 40.7    $ 86.9        $ 79.3
Pretax income             $123.1        $112.9    $244.1        $219.6
Effective income
  tax rate                35.60%        36.06%    35.59%        36.09%


The provision for income taxes increased $3.1 million, or 8%, for the
three months ended June 30, 2002 and $7.6 million, or 10%, for the six
months ended June 30, 2002 when compared to the same periods in 2001
primarily due to higher taxable income, partially offset by a lower
effective tax rate.


Asset/Liability Management

We manage anticipated cash flows of our assets and liabilities,
principally our finance receivables and debt, in an effort to reduce
the risk associated with unfavorable changes in interest rates.
Management determines the mix of fixed-rate and floating-rate debt
based, in part, on the nature of the finance receivables being
supported.  We limit our exposure to market interest rate increases by
fixing interest rates that we pay for term periods.  The primary way we
accomplish this is by issuing fixed-rate debt.  To supplement fixed-
rate debt issuances, AGFC also uses interest rate swap agreements to
synthetically create fixed-rate, long-term debt by altering the nature
of certain floating-rate funding, thereby limiting our exposure to
<PAGE> 20

market interest rate increases.  Floating-rate debt (principally
commercial paper) represented 32% of our average borrowings for the
three months ended June 30, 2002 and 33% of our average borrowings for
the six months ended June 30, 2002 compared to 34% for the three months
and six months ended June 30, 2001.  These percentages include the
effect of interest rate swap agreements that effectively converted
short-term or floating-rate debt to a long-term fixed rate.



                      PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.

See Note 8. of the Notes to Condensed Consolidated Financial Statements
in Part I of this Form 10-Q.


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

(a)  Exhibits.

     (12)  Computation of Ratio of Earnings to Fixed Charges.

(b)  Reports on Form 8-K.

     Current report on Form 8-K dated April 22, 2002, with respect to
     the Company changing independent auditors.
<PAGE> 21

                              Signature


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.


                                 AMERICAN GENERAL FINANCE CORPORATION
                                             (Registrant)


Date: July 30, 2002              By  /s/ Donald R. Breivogel, Jr.
                                         Donald R. Breivogel, Jr.
                                     Senior Vice President and Chief
                                       Financial Officer
                                     (Duly Authorized Officer and
                                       Principal Financial Officer)
<PAGE> 22

                             Exhibit Index


Exhibit

 (12)      Computation of Ratio of Earnings to Fixed Charges.