Error code: INVALIDCREDENTIAL INTERACTION REQUIRED

Question

I keep trying to log into outlook under my hosted email address, then it asks for my password and then I get the following trouble shooting message. I checked my hosting server with the password and have absolutely no problems, only in outlook and it is my primary log in.

Answer 1

Hi Todd Midas

I understand you’re having trouble adding your hosted/custom email address in new Outlook for Windows, and you receive INVALIDCREDENTIALS / INTERACTIONREQUIRED, even though the same password works with your hosting provider’s webmail.  

Please share: 

• Is the hosted mailbox IMAP or POP?  
• Does your provider require MFA/2‑step verification ? If yes, did you try an app password?  
• Can you sign in to the provider’s webmail successfully with the same username and password/app password?  
• What’s the provider/domain (example: @yourdomain.com)? And do you see any prompt mentioning “app password”?  

I would love to hear from you soon. Have a lovely day ! 

Answer 2

The error indicates an authentication problem between New Outlook and the hosted email provider, even though the password itself works on the provider’s side. Use these steps to fix it:

1. Remove cached credentials
   • Open Control Panel → Credential Manager → Windows Credentials.
   • Remove any entries related to Outlook, Office, or the specific email account.
   • Close Credential Manager.
2. Re-add the account in New Outlook
   • Open New Outlook.
   • Remove the problematic email account from Outlook’s account list.
   • Add the account again and carefully re-enter the full email address and password.
   • If prompted for advanced settings, verify the incoming/outgoing server names, ports, and encryption exactly as specified by the hosting provider.
3. If Outlook keeps prompting for a password
   • Ensure the username is the full email address and that Caps Lock is off.
   • If the password was recently changed with the hosting provider, make sure the new password is what is entered in Outlook.
   • For classic Outlook profiles, repeatedly prompting can also be caused by expired or changed passwords; updating the stored password in Outlook resolves this.
4. If using an older Outlook profile
   • For older Outlook versions that continually prompt for a password with Microsoft 365/Exchange, the Logon network security setting may need to be set to Anonymous Authentication via Control Panel → Mail → profile properties. This is not usually required for New Outlook, but if the same mailbox is configured in classic Outlook, misconfiguration there can interfere.
5. If the issue persists
   • Contact the hosting provider to confirm whether modern authentication, app passwords, or any security blocks are enforced for that mailbox.
   • If the account is Microsoft 365/Exchange Online and Outlook keeps asking for a password, running the “Diag: Outlook keeps asking for my password” diagnostic (for supported Outlook versions) can automatically detect and fix common authentication issues.

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References:

• Troubleshoot Outlook email setup
• Outlook continually prompts for your password when you try to connect to Microsoft 365
• Do you know how to fix the issue where Outlook keeps prompting for a password even though credentials are saved - Microsoft Q&A
• Outlook 2016 keeps asking for username and password
• New Outlook has stopped working, Fails when starting after 30 to 60 seconds - Microsoft Q&A