Since creatine draws water into the muscles, you may experience some water retention of around 3 to 5 pounds. However, this is only a short-term effect and one that occurs when an individual is taking a higher creatine dosage. Once you stop taking creatine, any water retention in your muscles should disappear.
So yes, if your goal is long-term fat loss, you can take creatine freely. However, if your focus is on short-term weight loss and every single pound counts, you may want to skip this supplement.