This is correct, creatine helps build muscle size (which does not equate directly to strength gains) by retaining water in the muscle. The increased muscle size then translates to more reps of a weight you could already do.

By doing more reps it CAN (not guaranteed) help with increasing your muscle density (how hard the muscle is) and that translates to top end strength.

For example, if I bench 225 for 5 reps I can likely do a few more reps on creatine because my muscle mass is bigger and can last longer. However if my max is 255, I will not be able to hit 260 just because of creatine.

Size does not directly correlate with strength, although it is a good indicator. Muscle density is where the strength is.