SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549-1004


                               ------------------


                                    FORM 10-Q

                               ------------------


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

                  For the quarterly period ended March 31, 1998

                                       OR

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


                               ------------------


                         Commission file number 0-13497

                         PITNEY BOWES CREDIT CORPORATION
           Incorporated pursuant to the Laws of the State of Delaware


                               ------------------


       Internal Revenue Service -- Employer Identification No. 06-0946476

                   27 Waterview Drive, Shelton, CT 06484-4361
                                 (203) 922-4000


                               ------------------


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 o

As of May 8, 1998, 460 shares of common stock, no par value, with a stated value
of $100,000 per share, were outstanding, all of which were owned by Pitney Bowes
Inc., the parent of the Registrant.

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>
                         PITNEY BOWES CREDIT CORPORATION




<TABLE>
            PART I -- FINANCIAL INFORMATION
                ITEM 1. -- FINANCIAL STATEMENTS
                    Consolidated Statement of Income:
<S>                                                                                                               <C>
                      Three Months Ended March 31, 1998 and 1997..........................................        3
                    Consolidated Balance Sheet:
                      March 31, 1998 and December 31, 1997................................................        4
                    Consolidated Statement of Cash Flows:
                      Three Months Ended March 31, 1998 and 1997..........................................        5
                    Notes to Consolidated Financial Statements............................................        6

                ITEM 2. -- MANAGEMENT'S NARRATIVE ANALYSIS OF
                    THE RESULTS OF OPERATIONS AND FINANCIAL
                      CONDITION...........................................................................        8


            PART II -- OTHER INFORMATION
                ITEM 1.-- LEGAL PROCEEDINGS...............................................................       11
                ITEM 6.-- EXHIBITS AND REPORTS ON FORM 8-K................................................       11
                SIGNATURES................................................................................       12
                Exhibit (i) -- Computation of Ratio of Earnings
                    to Fixed Charges......................................................................       13
                Exhibit (ii)--  Financial Data Schedule...................................................       14
</TABLE>

<PAGE>
                                  Page 3 of 14
                         PART I -- FINANCIAL INFORMATION

                         ITEM 1. -- FINANCIAL STATEMENTS


                         PITNEY BOWES CREDIT CORPORATION
                        CONSOLIDATED STATEMENT OF INCOME
                                   (unaudited)
                            (in thousands of dollars)


<TABLE>
                                                                                          Three Months Ended March 31,
                                                                                          ----------------------------
                                                                                           1998                   1997
                                                                                           ----                   ----
                REVENUE

<S>                                                                                   <C>                     <C>      
                  Finance income.......................................               $ 154,006               $ 168,649
                  Mortgage servicing revenue...........................                  23,312                  14,745
                                                                                        -------                 -------

                   Total revenue.......................................                 177,318                 183,394
                                                                                        -------                 -------

                EXPENSES

                  Selling, general and administrative..................                  43,523                  41,601
                  Interest.............................................                  40,399                  49,895
                  Provision for credit losses..........................                  14,778                  15,055
                  Depreciation and amortization........................                  12,262                  10,504
                                                                                        -------                 -------

                   Total expenses......................................                 110,962                 117,055
                                                                                        -------                 -------

                Income before income taxes.............................                  66,356                  66,339
                Provision for income taxes.............................                  19,507                  21,101
                                                                                        -------                 -------

                Net income.............................................              $   46,849              $   45,238
                                                                                        =======                 =======

                Ratio of earnings to fixed charges.....................                   2.63X                   2.32X
                                                                                        =======                 =======
</TABLE>








                 See Notes to Consolidated Financial Statements



<PAGE>

                                  Page 4 of 14
                         PITNEY BOWES CREDIT CORPORATION
                           CONSOLIDATED BALANCE SHEET
                                   (unaudited)
                            (in thousands of dollars)

<TABLE>

                                                                                 March 31,       December 31,
                                                                                   1998              1997
                                                                                 ---------        -----------
ASSETS

<S>                                                                           <C>                <C>          
Cash.................................................................         $      40,568      $     36,320
                                                                                  ---------         ---------
Investments:
  Finance assets.....................................................             3,440,439         3,475,538
  Investment in leveraged leases.....................................               697,730           667,779
  Investment in operating leases, net of accumulated depreciation....                29,654            32,112
  Allowance for credit losses........................................              (114,833)         (116,588)
                                                                                  ---------         ---------

    Net investments..................................................             4,052,990         4,058,841
                                                                                  ---------         ---------

Mortgage servicing rights, net of accumulated amortization...........               373,255           220,912
Assets held for sale.................................................               418,020           305,228
Investment in partnership............................................               203,473           158,327
Loans and advances to affiliates.....................................                38,394           290,488
Other assets.........................................................               354,985           258,224
                                                                                  ---------         ---------

      Total assets...................................................          $  5,481,685      $  5,328,340
                                                                                  =========         =========

LIABILITIES

Senior notes payable within one year.................................          $  1,713,050      $  1,970,110
Short-term notes payable to affiliates...............................                61,979                 -
Accounts payable to affiliates.......................................               197,247           232,917
Accounts payable and accrued liabilities.............................               279,837           199,905
Deferred taxes.......................................................               538,875           510,060
Senior notes payable after one year..................................             1,300,000         1,050,000
Subordinated notes payable...........................................               270,487           270,487
                                                                                  ---------         ---------

     Total liabilities...............................................             4,361,475         4,233,479
                                                                                  ---------         ---------

STOCKHOLDER'S EQUITY

Common stock.........................................................                46,000            46,000
Capital surplus......................................................                41,725            41,725
Retained earnings....................................................             1,032,485         1,007,136
                                                                                  ---------         ---------

     Total stockholder's equity......................................             1,120,210         1,094,861
                                                                                  ---------         ---------

       Total liabilities and stockholder's equity....................          $  5,481,685      $  5,328,340
                                                                                  =========         =========
</TABLE>





                 See Notes to Consolidated Financial Statements

<PAGE>
                                  Page 5 of 14
                         PITNEY BOWES CREDIT CORPORATION
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)
                            (in thousands of dollars)


<TABLE>

                                                                                Three Months Ended March 31,
                                                                                ----------------------------

                                                                                      1998              1997
                                                                                      ----              ----

OPERATING ACTIVITIES

<S>                                                                            <C>                <C>       
Net income.................................................................    $     46,849       $   45,238
Adjustments to reconcile net income to cash provided by
 operating activities:
  Provision for credit losses..............................................          14,778           15,055
  Depreciation and amortization............................................          12,262           10,504
  (Decrease) in accounts payable to affiliates.............................         (35,670)          (7,863)
  Increase in deferred taxes...............................................          28,815           22,876
  (Increase) in other current assets.......................................         (35,685)          (6,362)
  (Increase) in deferred charges and other non-current assets..............         (61,720)            (796)
  Increase in accounts payable and accrued liabilities.....................          79,932           25,063
  Other, net...............................................................           2,171            4,410
                                                                                  ---------        ---------

Net cash provided by operating activities..................................          51,732          108,125
                                                                                  ---------        ---------

INVESTING ACTIVITIES
  Investment in net finance assets.........................................        (367,773)        (536,986)
  Investment in operating leases...........................................             (47)          (2,634)
  Investment in leveraged leases...........................................         (21,792)               -
  Investment in assets held for sale.......................................        (118,444)        (167,507)
  Investment in partnership................................................         (22,473)               -
  Cash receipts collected under lease contracts, net of finance
     income recognized.....................................................         361,474          682,950
  Investment in mortgage service rights....................................        (161,434)         (39,850)
  Loans and advances to affiliates, net....................................         252,000           (8,502)
  Additions to equipment and leasehold improvements........................          (2,414)          (2,623)
                                                                                  ---------        ---------

Net cash used in investing activities......................................         (80,903)         (75,152)
                                                                                  ---------        ---------

FINANCING ACTIVITIES
  (Decrease) increase in short-term debt, net..............................        (195,081)         274,342
  Settlement of long-term debt.............................................               -         (200,000)
  Proceeds from senior notes...............................................         250,000                -
  Settlement of short-term loans from affiliates...........................               -          (74,538)
  Dividends paid to Pitney Bowes Inc.......................................         (21,500)         (19,500)
                                                                                  ---------        ---------

Net cash provided by (used in) financing activities........................          33,419          (19,696)
                                                                                  ---------        ---------

Increase in cash...........................................................           4,248           13,277
Cash at beginning of period................................................          36,320           20,937
                                                                                  ---------        ---------

Cash at end of period......................................................    $     40,568       $   34,214
                                                                                  =========        =========


Interest paid..............................................................    $     33,505       $   48,968
                                                                                  =========        =========

Income taxes refunded, net.................................................    $     (2,006)      $   (7,756)
                                                                                  =========        =========
</TABLE>


                 See Notes to Consolidated Financial Statements

<PAGE>
                                  Page 6 of 14
                         PITNEY BOWES CREDIT CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



Note 1 -- General

  The  accompanying   unaudited  consolidated  financial  statements  have  been
prepared in accordance with the instructions to Form 10-Q and do not include all
the  information  and  footnotes  required  by  generally  accepted   accounting
principles  for complete  financial  statements.  In the opinion of Pitney Bowes
Credit  Corporation  ("the Company" or "PBCC"),  all adjustments  (consisting of
only  normal  recurring  accruals)  necessary  to present  fairly the  financial
position as of March 31, 1998 and the results of  operations  and cash flows for
the three  months  ended  March 31,  1998 and 1997 have been  included.  Certain
amounts  from prior  periods have been  reclassified  to conform to current year
presentation.  Operating  results for the three  months ended March 31, 1998 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending December 31, 1998.
  These statements  should be read in conjunction with the financial  statements
and notes thereto  included in the Company's  Annual Report on Form 10-K for the
year ended December 31, 1997.


Note 2 --Finance Assets

The composition of the Company's finance assets is as follows:
<TABLE>

                                                                                  March 31,     December 31,
           (in thousands of dollars)                                                1998             1997
                                                                                  ---------     ------------

<S>                                                                            <C>               <C>        
            Gross finance receivables......................................    $  3,868,835      $ 3,923,767
            Unguaranteed residual valuation................................         445,839          461,051
            Initial direct costs deferred..................................          88,048           85,497
            Unearned income................................................        (962,283)        (994,777)
                                                                                  ---------        ---------

              Total finance assets.........................................    $  3,440,439      $ 3,475,538
                                                                                  =========        =========
</TABLE>


Note 3 -- Mortgage Servicing Rights

  Mortgage  servicing rights ("MSR") are recorded at the lower of amortized cost
or the present value of estimated net  servicing  income,  which does not exceed
fair market value and are  amortized in  proportion  to, and over the period of,
estimated net servicing income.  Fair value is estimated using a discounted cash
flow model which  incorporates  market discount and prepayment  rates as well as
other  assumptions  that market  participants  would use in their  estimates  of
future  servicing  income and expense.  The Company's policy for evaluating MSRs
for  impairment  is to  stratify  the  mortgage  servicing  rights  based on the
predominant  risk  characteristics  of the underlying  loans.  Upon  evaluation,
adjustments to current period operations and the valuation allowance are made if
any  individual  portfolio  stratum is deemed  impaired.  Based on an evaluation
performed as of March 31, 1998,  no impairment  was  recognized in the Company's
MSR portfolio.



<PAGE>
                                  Page 7 of 14
                         PITNEY BOWES CREDIT CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4 -- Notes Payable

The composition of the Company's notes payable is as follows:
<TABLE>

                                                                                 March 31,       December 31,
         (in thousands of dollars)                                                 1998              1997
                                                                                 ---------         ---------
<S>                                                                             <C>              <C>
         Senior Notes Payable:
           Commercial paper at the weighted average
             interest rate of 5.59% (5.66% in 1997)........................     $ 1,077,050      $ 1,361,110
           Notes payable against bank lines of credit and others at a
             weighted average interest rate of 1.57% (1.68% in 1997).......         411,000          384,000
           Current installment of long-term debt due within one year at
              interest rates of 5.84% to 6.31% (5.84% to 6.31% in 1997)....         225,000          225,000
                                                                                  ---------        ---------

            Total senior notes payable due within one year.................       1,713,050        1,970,110

            Senior notes payable due after one year at interest rates of
              5.65% to 9.25% (6.06% to 9.25% in 1997)......................       1,300,000        1,050,000
                                                                                  ---------        ---------

            Total senior notes payable.....................................       3,013,050        3,020,110
                                                                                  ---------        ---------

         Short-term Notes Payable to Affiliates:
            Notes payable to Pitney Bowes Inc. at a weighted
              average interest rate of 5.56%...............................          61,700                -
            Notes payable to Pitney Bowes Deutschland at a
              weighted average interest rate of 3.50%......................             279                -
                                                                                  ---------        ---------

            Total short-term notes payable to affiliates...................          61,979                -
                                                                                  ---------        ---------
         Subordinated Notes Payable:
            Non-interest bearing notes due Pitney Bowes Inc................         270,487          270,487
                                                                                  ---------        ---------

         Total notes payable...............................................     $ 3,345,516      $ 3,290,597
                                                                                  =========        =========

</TABLE>





<PAGE>

                                  Page 8 of 14
                         PITNEY BOWES CREDIT CORPORATION

     ITEM 2. -- MANAGEMENT'S NARRATIVE ANALYSIS OF THE RESULTS OF OPERATIONS
                             AND FINANCIAL CONDITION

Results of Operations

First Quarter of 1998 Compared to First Quarter of 1997

     Finance income in the first quarter of 1998 decreased 3.3 percent to $177.3
million  compared  to  $183.4  million  in 1997.  Finance  income  for  internal
small-ticket  financing  programs  increased  4.5 percent to $86.4  million from
$82.6  million  primarily  due to  higher  income  from  fee- and  service-based
programs  and  a  higher  earning  asset  base.   Finance  income  for  external
large-ticket  financing  programs  decreased to $30.8 million from $47.9 million
primarily due to lower  external  large-ticket  investment  levels in accordance
with the Company's  strategy to shift the  foundation of the external  financing
business from  asset-based to fee- and service- based  revenues.  Finance income
related to external  small-ticket  financing programs decreased to $36.8 million
from $38.1 million compared to the first quarter of 1997, primarily due to lower
yields on new business  underwritten  with tighter credit  standards at Colonial
Pacific Leasing Corporation  ("CPLC") and from lower earning asset levels in the
Dictaphone and Monarch portfolios.
     Revenue generated from mortgage  servicing  increased 58.1 percent to $23.3
million in the first  quarter of 1998  compared  with $14.8 million in the first
quarter of 1997,  due to a larger  mortgage  servicing  portfolio  and  mortgage
refinancing fees, which is in keeping with the Company's fee-based income growth
strategy.
     Selling, general and administrative ("SG&A") expenses increased 4.6 percent
to $43.5 million in the first quarter of 1998 compared to $41.6 million in 1997.
SG&A for internal  small-ticket  financing  programs  increased to $16.1 million
from $15.5 million  principally due to higher  professional fees and outsourcing
expenses related to new business  initiatives as well as consulting  services in
support of strategic initiatives such as improvements to information  technology
and  customer  service.  SG&A  for  external  large-ticket   financing  programs
increased  to $6.0  million  in 1998  from  $5.7  million  in 1997 due to higher
personnel related expenses.  SG&A for external  small-ticket  financing programs
decreased to $14.1  million from $15.3  million  principally  due to lower sales
assistance  fees paid by CPLC.  SG&A  expenses  related  to  mortgage  servicing
increased  41.9  percent  to $7.3  million  in 1998  from $5.1  million  in 1997
primarily due to the administration of a larger mortgage servicing portfolio.
     Depreciation  on operating  leases was $1.9 million in the first quarter of
1998  compared  to $4.1  million  in 1997  reflecting  a lower  operating  lease
investment balance at March 31, 1998 compared to March 31, 1997. Amortization of
mortgage servicing rights was $9.3 million in the first quarter of 1998 compared
to $5.7  million in 1997 due to a larger  mortgage  servicing  portfolio.  Costs
associated with the Company's  participation  in partnership  transactions  were
$1.1  million for the first  quarter of 1998  compared  to $0.7  million for the
first  quarter  of  1997.  This  increase  reflects  a  partnership  created  in
connection with an asset transfer made during the fourth quarter of 1997.
     The  provision for credit losses was $14.8 million for the first quarter of
1998  compared   with  $15.1  million  in  1997.   The  provision  for  internal
small-ticket  financing  programs  decreased  to $8.0  million from $8.2 million
primarily  due  to  lower  reserve   requirements  partly  offset  by  increased
provisions for new business initiatives. The provision for external small-ticket
financing  programs was $6.3 million for the first  quarter of 1998  compared to
$6.4 million in 1997,  reflecting a lower Dictaphone and Monarch portfolio.  The
provision for external  large-ticket  financing programs was $0.5 million in the
first quarter of both 1998 and 1997.
     The  Company's  allowance  for credit  losses as a percentage  of net lease
receivables  (net  investments  before  allowance  for  credit  losses  plus the
uncollected  principal balance of receivables sold) decreased slightly from 2.55
percent at December  31, 1997 to 2.54  percent at March 31,  1998.  PBCC charged
$16.5 million and $11.4 million  against the allowance for credit losses through
the first quarter of 1998 and 1997, respectively.
     Interest  expense was $40.4  million in the first  quarter of 1998 compared
with $49.9 million in 1997. The decrease  reflects  lower average  borrowings in
1998 combined with lower interest rates.  The lower borrowing levels were due to
decreased  external  large-ticket  asset  levels  offset by higher  internal and
external  small-ticket  asset levels as well as an increased  mortgage servicing
portfolio.  The effective  interest rate on average  borrowings was 5.98 percent
for the first  quarter of 1998  compared to 6.16  percent for the same period of
1997.  The Company does not match fund its  financing  investments  and does not
apply different interest rates to its various financing portfolios.
     The  effective  tax rate for the  first  quarter  of 1998 was 29.4  percent
compared  with  31.8  percent  for the same  period  of 1997.  The  decrease  is
primarily due to lower tax provision  requirements relating to certain leveraged
lease transactions.
     The  Company's  ratio of earnings  to fixed  charges was 2.63 times for the
first quarter of 1998 compared with 2.32 times for the same period of 1997.  The
increase reflects the disposition of external large-ticket assets, proceeds from
which were used for debt reduction.


<PAGE>
                                  Page 9 of 14
                        PITNEY BOWES CREDIT CORPORATION

     ITEM 2. -- MANAGEMENT'S NARRATIVE ANALYSIS OF THE RESULTS OF OPERATIONS
                       AND FINANCIAL CONDITION (CONTINUED)



Financial Condition

Liquidity and Capital Resources

     The  Company's   principal   sources  of  funds  are  from  operations  and
borrowings.  It  has  been  PBCC's  practice  to  use a  balanced  mix  of  debt
maturities,  variable- and fixed-rate  debt and interest rate swap agreements to
control sensitivity to interest rate volatility.  PBCC's debt mix was 53 percent
short-term and 47 percent long-term at March 31, 1998 and 60 percent  short-term
and  40  percent   long-term  at  December  31,   1997.   PBCC's   swap-adjusted
variable-rate  versus  fixed-rate debt mix was 37 percent  variable-rate  and 63
percent fixed-rate at March 31, 1998 and 47 percent variable-rate and 53 percent
fixed-rate  at December  31,  1997.  The Company may borrow  through the sale of
commercial paper,  under its confirmed bank lines of credit,  and by private and
public offerings of intermediate- or long-term debt securities.
     During January 1998, PBCC issued $250 million of debt securities  available
under the shelf  registration.  Proceeds  from the debt issuance will be used to
help meet the  Company's  financing  needs for the  current  year.  The  Company
intends to file a new shelf registration statement during 1998. The Company also
entered into an interest rate swap  agreement for $125 million to better control
its  sensitivity  to interest rate  volatility.  The Company had unused lines of
credit and revolving credit facilities  totaling $1.5 billion at March 31, 1998,
largely supporting its commercial paper borrowings.
     The Company's utilization of derivative  instruments is normally limited to
interest  rate swap  agreements  ("interest  rate  swaps") and foreign  currency
exchange  forward  contracts   ("foreign  currency   contracts").   The  Company
periodically  enters into  interest  rate swaps as a means of managing  interest
rate exposure.  The interest rate differential paid or received is recognized as
an adjustment to interest expense. The interest differential on the swap will be
offset against  changes in valuation of the assets  resulting from interest rate
movements. The Company is exposed to credit loss in the event of non-performance
by  the  counterparties  to  the  interest  rate  swaps  to  the  extent  of the
differential  between  fixed- and  variable-rates;  such  exposure is considered
minimal. The Company has entered into foreign currency contracts for the purpose
of minimizing its risk of loss from fluctuations in exchange rates in connection
with certain  intercompany loans and certain transfers to the Company by foreign
affiliates of foreign currency  denominated  lease  receivables.  The Company is
exposed to credit loss in the event of  non-performance by the counterparties to
the foreign currency  contracts to the extent of the difference between the spot
rate at the date of the contract delivery and the contracted rate; such exposure
is also considered minimal.
     Since the Company  normally enters into derivative  transactions  only with
members of its banking group, the credit risk of these transactions is monitored
as part of the normal credit review of the banking group.  The Company  monitors
the market risk of derivative instruments through periodic review of fair market
values.
     Gross finance  assets at the end of the first quarter of 1998 decreased 1.6
percent from December 31, 1997. The decrease is principally  due to the shift in
emphasis from asset-based  investments in the external  large-ticket  segment to
fee-based  transactions.  Overall levels of lease  receivables  are in line with
management's expectations.
     The  Company   continues   to  actively   pursue  a  strategy  of  external
large-ticket  asset  sales,  thereby  allowing  the Company to focus on fee- and
service-based revenue rather than asset-based income.
     The Company's  liquidity  ratio (finance  contracts  receivable,  including
residuals,  expected  to be  realized in cash over the next 12 months to current
maturities of debt over the same period) was .87 times at March 31, 1998 and .89
times at December 31, 1997.
     The  Company  will  continue  to use cash to invest in finance  assets with
emphasis  on  internal  and  external   small-ticket  leasing  transactions  and
controlled investment in external large-ticket  financing programs.  The Company
believes that cash generated from  operations and  collections on existing lease
contracts  will  provide  the  majority  of  cash  needed  for  such  investment
activities. Borrowing requirements will be primarily dependent upon the level of
equipment  purchases  from Pitney  Bowes Inc.,  the level of external  financing
activity, capital requirements for new business initiatives, and the refinancing
of maturing  debt.  Additional  cash,  to the extent  needed,  is expected to be
provided from commercial  paper and  intermediate- or long-term debt securities.
While the Company  expects that market  acceptance  of its short- and  long-term
debt will  continue  to be  strong,  additional  liquidity  is  available  under
revolving credit facilities and credit lines.


<PAGE>
                                  Page 10 of 14
                         PITNEY BOWES CREDIT CORPORATION

     ITEM 2. -- MANAGEMENT'S NARRATIVE ANALYSIS OF THE RESULTS OF OPERATIONS
                       AND FINANCIAL CONDITION (CONTINUED)



The Company wants to caution readers that any forward-looking  statements (those
which talk about the Company's or  management's  current  expectations as to the
future) in this Form 10-Q or those  made by the  Company's  management,  involve
risks and  uncertainties  and may  change  based on various  important  factors.
Factors which could cause future financial performance to differ materially from
the  expectations  as expressed in any  forward-looking  statement made by or on
behalf of the Company include:  the level of business and financial  performance
of Pitney  Bowes Inc;  the impact of  governmental  financing  regulations;  the
success of the Company in developing strategies to manage debt levels, including
the  ability of the  Company to access the  capital  markets;  the  strength  of
worldwide  economies;  the effects of and changes in trade,  monetary and fiscal
policies and laws, and inflation and monetary fluctuations, including changes in
interest rates;  the willingness of customers to substitute  financing  sources;
and the level of the Company's success at managing customer credit risk.



<PAGE>


                                  Page 11 of 14
                           PART II - OTHER INFORMATION

ITEM 1 -- LEGAL PROCEEDINGS

  From  time to time,  the  Company  is a party to  lawsuits  that  arise in the
ordinary  course of its business.  These  lawsuits may involve  litigation by or
against the Company to enforce  contractual  rights under  vendor,  insurance or
other  contracts;  lawsuits  by or against the  Company  relating to  equipment,
service or payment  disputes with customers;  disputes with employees;  or other
matters.  The Company is currently a defendant in a number of lawsuits,  none of
which should have, in the opinion of management  and legal  counsel,  a material
adverse effect on the Company's financial position or results of operations.

ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K

   a.   Financial Statements - see index on page 2
        Exhibits (numbered in accordance with Item 601 of Regulation S-K)
<TABLE>

         Reg S-K                                                                   Incorporation
<S>     <C>                <C>                                                     <C>
         Exhibits                           Description                            by Reference
        ---------          -------------------------------------------------       ---------------

            (12)           Computation of Ratio of Earnings to Fixed Charges       See Exhibit (i)
                                                                                   on page 13
            (27)           Financial Data Schedule                                 See Exhibit (ii)
                                                                                   on page 14

                There are no  unregistered  debt  instruments in which the total
                amount of securities authorized thereunder exceeds 10 percent of
                the total  assets  of the  Company.  Copies  of all  instruments
                defining  the rights of  securities  holders  are  available  on
                request.


    b. A report on Form 8-K was filed on February 4, 1998.  Such report,  dated
       January 13, 1998,  pertained to the  issuance of the  Company's  5.65% 
       Notes due January 15, 2003.



</TABLE>


<PAGE>


                                  Page 12 of 14
                                   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 thereunto duly authorized.







                                           PITNEY BOWES CREDIT CORPORATION

                                           By         /s/  G. Kirk Hudson
                                                    ----------------------
                                                        G. Kirk Hudson
                                                   Vice President - Finance
                                                   (Principal Financial and
                                                      Accounting Officer)
Dated:  May 14, 1998



<PAGE>
                                  Page 13 of 14
                                   Exhibit (i)
                Computation of Ratio of Earnings to Fixed Charges

                            (in thousands of dollars)

<TABLE>


                                                                            Three Months Ended
                                                                                 March 31,
                                                                          -----------------------
                                                                              1998           1997
                                                                              ----           ----

<S>                                                                      <C>            <C>      
       Income before income taxes.................................       $  66,356      $  66,339
                                                                           -------        -------


       Fixed charges:
         Interest on debt.........................................          40,399         49,895
         One-third of rent expense................................             324            340
                                                                           -------        -------

       Total fixed charges........................................          40,723         50,235
                                                                           -------        -------

       Earnings before fixed charges..............................       $ 107,079      $ 116,574
                                                                           =======        =======
                                                                          
       Ratio of earnings to fixed charges (1).....................           2.63X          2.32X
                                                                           =======        =======

</TABLE>








     (1) The ratio of earnings to fixed charges is computed by dividing earnings
     before fixed charges by fixed charges. Fixed charges consist of interest on
     debt and  one-third  of rent  expense  as  representative  of the  interest
     portion.

<PAGE>