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Newly created MySQL users can't login

This is probably a noob question, but I just created a MySQL user using phpMyAdmin (backups@localhost), but that user is having issues logging in to MySQL via the shell

using mysqldump command
mysqldump: Got error: 1045: Access denied for user 'backups'@'localhost' (using password: YES) when trying to connect

using mysql command: 
ERROR 1045 (28000): Access denied for user 'backups'@'localhost' (using password: YES)

I've searched all over the internet, but no solutions seem to work. I've flushed the privileges, I have no anonymous users, and still can't get them to login. 
The only user that can login is rootroot has a password, and root can login anywhere just fine

Any other suggestions are appreciated.