after doing some more research and tinkering with it, I was successfull, and want to share the info.
Mind you this was done on AT'Ts GSM model. Go to App Store, find and attempt to download a free app. Choose to create an ID, then pick USA as the country. Follow the prompts and enter the personal info which does not have to be legit, it is nobody's business. Just make sure to use your valid email address. Once you're in the screen that asks for a credit card number, go to Credit Card Name pick menu, and available options should be: Visa, Amex, Mastercard, None. Select None and proceed. Done.
Note that if you're going to use an email address which already has been attempted to created an apple ID, even though incomplete, will not work, and None option in the cc name field will not appear. Make sure to use a unique email address where you can check your email.
Also note, that None option may not show up if you decide to create new id by going through Settings>Store.