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Sometimes it is necessary to connect to the same remote host several times. Reentering passwords again and again would be annoying, when the chosen method does not support access without password prompt through own configuration.
By default, tramp caches the passwords entered by you. They will be reused next time if a connection needs them for the same user name and host name, independently of the connection method.
Passwords are not saved permanently, that means the password caching
is limited to the lifetime of your GNU Emacs session. You
can influence the lifetime of password caching by customizing the
variable password-cache-expiry. The value is the number of
seconds how long passwords are cached. Setting it to nil
disables the expiration.
A password is removed from the cache if a connection isn't established successfully. You can remove a password from the cache also by executing M-x tramp-clear-passwd in a buffer containing a related remote file or directory.
If you don't like this feature for security reasons, password caching
can be disabled totally by customizing the variable
password-cache (setting it to nil).
Implementation Note: password caching is based on the package
password.el in No Gnus. For the time being, it is activated only when
this package is seen in the load-path while loading tramp.
It will be activated mandatory once No Gnus has found its way into
GNU Emacs.