A term mainly used by whites to make them sound more black. Typically used to sound more thuggish, like they are from the streets when really they are most likely from a middle-class suburb family and have maybe smoked pot. Most likely the worst they have done is they got caught with a fake ID. Caution: people who claim to have 'street cred' probably have not spent any time on the street other than doing shopping downtown.
Also, people who try to pretend like they know how to live on the streets to sound cool obviously have not lived on the streets and probably have some issues.
"Ya, I got street cred. I once knew a black guy who went to jail."
"Living on the streets is dope, yo. I know, because I have street cred."