Creatine does cause intra-muscular water retention. That's why people tend to get dehydrated after taking creatine. It can pull water from other parts of the body and put it in the muscles. Because it's intra-muscular, it doesn't matter if you take it while cutting, so long as you're not taking a diuretic also. While cutting, you have to also limit your water consumption. People that take creatine and drink a lot of water get that rounded look to them. The only potential probelm I see is the dehydration being intensified. If you're in a hot climate like Texas or Florida, it may not be the best idea. Outside of that, you should be fine. And remember, no more than 5g per day (even on workout days if you're trying to cut).