Hi,
What are the note taking apps that works well with Drafts without needing to have the app installed on the phone.
Right now I have actions to create note in Evernote but I am not liking Evernote or One note. Are there any other options for which credentials can be just stored in drafts?
Evernote does not even offer subfolders 
Not sure what your requirements are, so it’s hard to make a good recommendation. By far the more flexible way to export is to files - so any system that works directly with text/markdown files on disk would work well because Drafts can create those files nearly anyway (iCloud Drive, Dropbox, Google Drive, Box, OneDrive).
As far as what can be done without any app installed other than files, Evernote and OneNote are mostly what’s available as directly web API integrations already present in Drafts. Others could likely be integrated by a variety of means (direct scripted API calls, sending email to a system for ones that support it, etc.).
For the option 1 using files, do you think I can push it to a cloud storage like iCloud and the note taking app like Crafts will read from cloud storage?
Do you know the Action Directory?
You might consider to search for actions to use the possible note taking apps there.
If you are thinking about a plain text approach nearly every text editor would do.
But as @agiletortoise stated as long as we do not know if you have to stay on device / on iOS / on iPad it is hard to suggest something concrete.
iCloud has some limitations you have to be aware of.