If you are accessing Remote Desktop (Terminal) server located in another domain you can come across an issue where Remote Desktop client refuses to use saved login credentials, forcing you to re-renter password every single time.

Following error is displayed:

Your Credentials did not work

Your system administrator does not allow the use of saved credentials to log on to the remote computer <computer name> because its identity is not fully verified. Please enter new credentials.

The logon attempt failed

This issue seems to affect only Windows Vista and higher OS.

To resolve the problem perform following on the client side:

• Open Local Policy Editor
  Start > gpedit.msc
  
• Navigate to Computer Configuration > Administrative Templates > System > Credentials Delegation
  
  
• Open Policy Allow Delegating Saved Credentials with NTLM-only Server Authentication
  
• Set Policy status to Enabled
• Click on Show next to Add servers to the list
• Add all servers you are connecting to in format TERMSRV/<server> where <server> – IP address or DNS name
  You are allowed to use wildcards. e.g. TERMSRV/* would allow access to all servers
• Close all dialog boxes saving changes
• Open command prompt and run gpupdate
  
  

Now you should have no issues using saved login credentials