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I have to handle some sensitive data in my application, such as passwords, credit card information, etc.
What are possible security risks I could have and how can I avoid them?
Don’t store Credit Card Information (in some jurisdictions, you might be breaking the law by doing so, or at least falling foul of a commercial agreement)
You don’t say where your sensitive data is stored, but encypting it is the usual approach. There are two forms symmetric and asymmetric. Symmetric means you use the same key for encrypting and decrypting. Asymmetric consists of a public/private key pair.
Passwords: store only a salted hash (i.e. un-reversible) of your passwords, and compare with a similarly salted hash of an entered password.