Creatine while cutting weight?

Yes, you could definitely use creatine during a weight loss phase (reducing fat). Although the usefulness depends on you training (kind) and frequency.

The main benefit of using creatine is the muscle endurance (during high intensity training) and recovery boost, which makes it possible to gain more muscle faster. Lift more weight for more reps. More muscle means you body uses more energy to maintain the muscle mass = fat loss bonus.

One remark though, using creatine only is beneficial if you lift weights regularly and lift heavy. Taking 5 grams of creatine every day only to lift weights one day a week is a waist of money. Other training (such as endurance training) don't have solid research on the befits of creatine supplementation (and creatine is one of the most researched supplements out there.. so I wouldn't recommend using it for other sports).

Please keep in mind that a creatine loading phase (20 grams a day) can result in water retainment. Studies have shown that a loading phase only speeds up the proces (slightly) for the creatine having full effect. But as mentioned a loading phase can result in added weight. Although this is water-weight and not fat (nor-muscle) I wouldn't recommend a loading phase as the effects wil be beneficial soon enough.

Then I would recommend starting with a regular dose (about 5 grams a day) without any loading phase. From personal experience the effects wil gradually increase until 2 / 3 weeks when you are on the same level which you would reach on a loading phase of 1 week (20 grams a day). I didn't have any water retention after supplementation.

PS. Performing big muscle exercises also helps to achieve your goals (think squats, bench press, deadlift) and try to very gradually (but continually) increase the weight from week to week. Although you should consider looking at fat % as muscle weight more than fat.