ITunes is the program that Apple offers, for you to buy and store your songs, podcasts, movies and audio books. It allows you to synch with your iPod and iPhone as well. Thus,it is a good idea to have an account with the itunes store.
If you do not want to use your credit card to create an account in iTunes store, fine..don’t! But then, Apple requires you to have some form of payment on hand while creating an iTunes account because Apple would want to bill you for any commercial content you may buy. Even though you can download loads of free content at the iTunes Store, you can buy content as well! Thus you do need an account.
If you don’t have a credit card or do not want to use your credit card , you can use a PayPal account. You can choose to have your purchases billed to that account instead .You can register for free here and create an account with just your email id.You will be able to do all your transactions through PayPal.
Can you create an iTunes account with an iTunes Gift Card? Well, no. That’s because, iTunes Store doesn’t prevent you from buying content worth more than the value of your gift card and it would want to bill you for the extra amount. However, you can add a gift card to your iTunes account.
So, create a PayPal account and go about purchasing stuff from iTunes without using your credit card!