I bet very few of our readers have heard about the Credential Manager, let alone know what it is and how to use it. I did not know that much either, even though I was aware of its existence. That's why, this tutorial tries to demystify the Credential Manager, show how to use it and explain why it is important to your Windows computing experience.
Credential Manager is the "digital locker" where Windows stores log-in credentials (username, password, etc.) for other computers on your network, servers or Internet locations such as websites. This data can be used by Windows itself or other applications that know how to use it, such as: Windows Explorer, the tools included in Windows Live Essentials, Microsoft Office, Internet Explorer or applications for running virtual machines (such as Windows Virtual PC).
The credentials are split into three categories:
These credentials are automatically stored and managed by Windows and the applications you are using. Unless you want to know which credentials are stored on your computer or you need to remove or edit an incorrect one, you won’t need to use the Credential Manager.
Important: Windows 8 adds one more type of credentials called Web Credentials. As the name implies, such credentials are used by Internet Explorer to automatically log you into certain websites.

Web credentials are created and deleted by Internet Explorer via its password management features. You are not able to create web credentials from the Credential Manager, only view existing credentials or remove them.
One way of launching the Credential Manager is to open the Control Panel and go to User Accounts and Family Safety -> Credential Manager.

The fastest way is to search for the word "credential" in the Start Menu search box and click on the Credential Manager search result.
On most Windows 7 and Windows 8 computers, you will see mostly the same credentials being stored.

Very common examples include:
The process of adding a credential is very simple. First, think about the correct type of the credential you want to add. Which of the three is it?
Let’s assume you want to add a Windows credential, so that you can log-in to another computer’s shared folders.
Click "Add a Windows credential".

You are then asked to type the necessary login details. First, type the IP address or the name of the computer. Then, type the username you want to use to login. Don’t forget to type the name of the computer before the user name, as shown in the screenshot below. Next, type the password and click OK.

The credentials have now been stored and will be used automatically each time you access that network computer.
To remove a credential, first find it and expand it, by clicking on its name or the arrow on the right.

Next, click on "Remove from vault".
You are now asked to confirm the deletion process. Click Yes.

The credential has been removed and will no longer be used.
To edit the details of an existing credential, first find it and expand it. Then, click on Edit.

You are now able to change its details. Don’t forget to press Save, so that your changes get stored.
As you can see from this article, the Credential Manager has an important role in your computing experience. Knowing how to find it and work with it, can be important when you are not able to log in to different network and web locations, due to the wrong details being stored and used.
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Comments
This is good info, I'll be
This is good info, I'll be keeping it. But what I NEED to know is how securely is this information held. I already know that Windows userid Passwords are not protected at all. They can be simply hacked or replaced using commonly available tools from the internet.
What encryption algorythm is used on Credential manager.
This is a very good question.
This is a very good question. I am planning to continue investigating and experimenting with this tool and write at least one more article about it. I will definitely look at how well this data is encrypted and share what I find out.
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