Applications will not store clear text password. This is known to any professional system developer.
Password stored are normally hashed, which is impossible to be decrypted.
Hash works by generating a text string for given text value, one way direction.
Means, if you give string value "googleYahooBing", the end result will always be "b3f80137e981472e27170192617d55ac".
Thus, when you login into a system, the system will hash your inputs, and compare the hashed values. If hashed values match, means you password is correct, and proceed to login.
In this case, even someone managed to get the stored password value, the hashed value, they still cannot get the original password text.
But, is this safe?
NO. Answer is clear. Attackers can always create random passwords, and hash each generated password, then compare the hash value, if match, means they get your password correct. And using that password, they may be able to authenticate against other system (if you happens to use the same password, well, this is very common ... I won't create one password for each system I login into).
To avoid this kind of situation, the best way, it is to add "SALT" for each password before hashing them.
Say, still the same password, "googleYahooBing", for a system we build, we set the salt as "LyCoS" (this salt can be hard-coded, or to be random generated and stored in tables). Then before hashing, "googleYahooBingLyCoS" is the password. Now hash it, will get "73ac159e98b8338667437f7b1e748130".
Now, even if someone manages to crack this system, and get this password, that limits the exposure to this system only.