Would it be bad to link to other sites (in which have my link on their index) using robots.txt? would this encourage google to index more pages on my site and add more backlinks or would it only be helping their site? or would this just complteely screw me over? I already have the sites link's on the bottom of my site. thanks
Robots.txt is used to control the crawling activity in your site only. I dont think that you can link to other sites using robots.txt file.
I don't think you should since robots.txt is mostly just used to tell the search engines which parts of your site you don't want indexed.