Taking creatine to make you bloated and water logged is not the point of creatine.

Taken from http://www.cbass.com/CREATINE.HTM:

Creatine plays an important role in muscle contraction. It helps replenish ATP, a chemical which is the immediate source of energy for all muscle contractions. In spite of its vital role, ATP is in short supply in the body; there is only enough available at any one time to provide energy for about ten seconds of explosive contractions. ATP, therefore, must be constantly replenished.

ATP provides energy to the muscles by releasing a phosphate molecule; it then becomes another compound called ADP. That's where creatine comes to the rescue. Creatine transfers phosphate to ADP, recreating ATP. The resynthesized ATP can then be used again to fuel more muscle contractions. Creatine, consequently, is a limiting factor in the resynthesis of ATP. The more creatine in the muscle, the more times ATP can be quickly regenerated.

The availability of creatine also delays the production of lactic acid, the substance which causes the famous "burn" and can eventually shut down the muscle. When creatine is present the muscles don't have to switch to a second energy system called glycolysis. But when glycolysis kicks in the muscles rely primarily on glycogen (muscle sugar) to generate more ATP. Lactic acid is a by-product of glycolysis. Lactic acid inhibits glycolysis and blocks the resynthesis of ATP through the combination of ADP and creatine. By delaying the accumulation of lactic acid, creatine allows the muscles to continue working with less pain and fatigue.

Admittedly, this is a bare-bones simplified explanation. The bottom line is that more creatine in your muscles allows them to contract harder and longer, especially in activities involving short bursts of explosive energy, such as weightlifting, bodybuilding and sprinting.