Is it true that women that use Steroids(female bodybuilder) have larger clits and if so why?

That does happen sometimes. The reason for this is because anatomically, the clitoris is the female equivalent to the penis. When a fetus is developing, testosterone causes the undeveloped sex organs to become a penis. In the absence of testosterone, a clitoris develops. When high levels of testosterone are introduced into an adult woman, through steriods (many steroids for enhancing muscles include testosterone), the clitoris will grow some.

Yes. The presence of testosterone encourages that tissue to grow. Steroids are testosterone, hence the growth. They also give you acne, oily skin, increased body hair, and a variety of other problems.