Outlook Password Incorrect Loop: How to Reset Stored Credentials

Outlook can get stuck in a password loop, repeatedly asking for credentials even when the correct password is entered. This happens because Windows stores outdated or corrupted login information in its credential manager. This article explains how to clear these stored credentials to break the loop and regain access to your email.

Why Outlook Gets Stuck in a Password Loop

Outlook relies on the Windows Credential Manager to store and retrieve your email account passwords. When you first set up an account, Windows saves a secure copy of your login details. If your password changes on the server, like after a company-wide reset, the stored credential becomes outdated.

Outlook tries to use the old password, fails, and prompts you for a new one. Sometimes, Windows fails to update its stored copy correctly. This creates a cycle where Outlook keeps asking for a password, even if you type the right one, because it cannot overwrite the corrupted data in the credential vault. The issue is common after Windows updates or when switching between work and personal accounts on the same computer.

How Cached Credentials Work

For Microsoft 365 or Exchange accounts, credentials are often cached using modern authentication. This process involves tokens rather than just a password. If these tokens expire or become damaged, the authentication flow breaks. Resetting the credentials clears these tokens and forces a fresh, full login from the start.

Steps to Clear Stored Credentials and Fix the Loop

Follow these methods in order. Start with the Credential Manager, as it is the most direct fix for the stored password issue.

Method 1: Remove Credentials via Windows Credential Manager

1. Open Windows Credential Manager
   Press the Windows key, type “Credential Manager,” and select the Control Panel result.
2. Navigate to Windows Credentials
   In the Credential Manager window, click on “Windows Credentials” near the top of the page.
3. Find and remove Outlook entries
   Look in the “Generic Credentials” section for entries containing “Outlook,” “MicrosoftOffice,” or your email address. Click the down arrow next to an entry, then click “Remove.” Repeat for all related credentials.
4. Restart Outlook
   Close Credential Manager and restart Outlook. You should now see a fresh login prompt. Enter your current email password to reconnect.

Method 2: Repair Your Account in Outlook

1. Open Outlook Account Settings
   In Outlook, go to File > Account Settings > Account Settings.
2. Select and repair your account
   In the Email tab, click to highlight your problematic email account. Then, click the “Repair” button above the list.
3. Follow the repair wizard
   A new window will open. Follow the on-screen prompts. You may be asked to enter your password again. The wizard will attempt to fix the connection and update credentials automatically.

Method 3: Create a New Outlook Profile

1. Open Mail Setup in Control Panel
   Close Outlook. Press Windows key + R, type “control,” and press Enter. Search for “Mail” and click “Mail (Microsoft Outlook).”
2. Access profile settings
   In the Mail Setup window, click “Show Profiles.”
3. Add a new profile
   Click “Add.” Type a name for the new profile, like “Outlook Fix,” and click OK. Follow the prompts to re-add your email account with the correct password.
4. Set the new profile as default
   Back in the Mail window, select “Prompt for a profile to be used” if you want to choose, or select your new profile and click “Set as Default.” Click Apply, then OK. Start Outlook.

If the Password Loop Persists After the Main Fix

Outlook still prompts after clearing credentials

If the prompt continues, the issue may be with your Windows Security policy or a third-party add-in. Start Outlook in Safe Mode by holding Ctrl while clicking the Outlook icon. If the password prompt disappears in Safe Mode, a COM add-in is likely interfering. Disable add-ins one by one via File > Options > Add-ins to find the culprit.

Password prompt appears for Microsoft 365 only

This can indicate a problem with the modern authentication tokens. Use the Microsoft Support and Recovery Assistant tool. Download and run it from Microsoft’s website, select “Outlook,” and then choose “I’m having problems with my password.” The tool will diagnose and attempt to fix authentication issues automatically.

Credentials reappear immediately after deletion

Some enterprise management software or Group Policies automatically re-deploy credentials. You may need to contact your IT department. As a user-level workaround, try disabling credential roaming. In Credential Manager, go to “Windows Credentials,” find the entry, and after expanding it, change “Windows Credentials” to “None” for the roaming status.

Manual Credential Reset vs. Automated Repair: Key Differences

Item	Manual Reset (Credential Manager)	Automated Repair (Outlook Tool)
Primary Use	Directly delete corrupted stored passwords in Windows	Diagnose and fix a broad range of account connection issues
User Control	High – you choose exactly which credentials to remove	Low – the wizard runs predefined checks and fixes
Best For	Password loops after a known password change	Vague errors or when the exact cause is unknown
Speed	Fast, usually under one minute	Slower, involves a multi-step diagnostic process
Risk Level	Low – only affects stored passwords for the selected apps	Low – rarely changes settings outside of the mail account

You can now stop the password loop by clearing outdated credentials in Windows. Try the Repair tool in Outlook Account Settings for a quick automated fix. For a permanent solution on a shared computer, consider setting up separate Windows user accounts to keep credentials isolated.