Earlier, we wrote on creating an iTunes account without a credit card. Unfortunately, Apple has its policies changed so you can't do that anymore.
To put it simply, you have to specify valid credit card information when you setup your Apple ID or iTunes account. This is a hurdle for people who are only looking to download free apps from the App Store. But it looks like there is no other option.
How to Create An Apple ID Without Credit Card Info?
If you want to just create an Apple ID, you do not have to enter any credit card information. For this, however, you must create the ID through a browser. You can create the Apple ID through http://appleid.apple.com.
If you choose to create the Apple ID right on on your iPhone/iPad (through Settings → iCloud or Settings → iTunes & App Store), you will be prompted to enter valid credit card info to proceed setting up the Apple ID.
But You Still Need Credit Card Info
Even after you create an Apple ID through the browser – where you don't enter any credit card information – you cannot use the ID to download free apps unless you enter valid credit card detail. This kind of sucks but Apple has made this a mandatory step.
When you create an Apple ID (via http://appleid.apple.com) and then use that to download an app or free music, you will be prompted to “Review” – which means it takes you to a screen where you add the credit card information. Without entering this, you can't proceed to download – even if it's just a free app.
Fortunately, Apple is not going to bill anything unless you make a purchase. The credit card information is probably only for validation (and a way of preventing spam iTunes accounts). However, once you have authorized an account and downloaded something, it looks like you can ‘edit' the ID to remove any credit card information associated with it.