Credentials are supplied during an Authentication process to prove identity - i.e. who a user (or system) is.
It typically consists of a not-secret and secret part but can be more complex.
A username and password is the most recognisable form, but you can also use PIN numbers, random number key fobs like SecurID, pictures, fingerprints and iris scans to name a few.
High security systems will use multiple 'secrets' - multi-factor-authentication.
First you are Authenticated to determine who you are by checking your Credentials - then you are Authorized to determine what you can do