Dictionary wont correct the words just shows up at top way I mis spelled something then even when I spell it Wright underlines the correct spelling with a red line

Auto-Correction uses your keyboard dictionary to spellcheck words as you type, automatically correcting misspelled words for you. To use it, just type in a text field.

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Use Auto-Correction

1. Open the Settings app.
2. Tap General > Keyboard.
3. Turn on Auto-Correction. By default, Auto-Correction is on.

How to use Auto-Correction and predictive text on your iPhone ...

You may get better and prompt responses if you may kindly provide the iPhone Model that you have and the iOS version if it is known to you and re-post.

With the limited information that you have provided, It is hard to even guess the problems faced by you. 

You may get faster and better responses to your query by --> Writing an effective Apple Support Commun… - Apple ...

Please re-post with detail so that someone else can help.