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Contact dermatitis is another possible explanation for your rash. This rash occurs when certain substances come into contact with your skin. Contact dermatitis causes a localized rash on the skin which may be red, sore, itchy, and have bumps or blisters. There are two kinds of contact dermatitis: irritant or allergic. Irritant contact dermatitis is more often painful than itchy, and is caused by a substance damaging the part of your skin where it comes into contact.
There are many different conditions that can cause raised bumps to appear on your skin. The most common causes of bumps are harmless and do not require medical treatment unless you have discomfort: 1  Cysts are growths that develop under the skin. 2  They feel like a small ball and can be moved around slightly. Psoriasis is a skin disease that produces scaly, red, inflamed patches on your skin that may be itchy. 2  Keloids are smooth, raised growths that form around wounds. 3  Keratosis pilaris is a skin condition characterized by overgrowth of a protein called keratin. 4  It causes small bumps around hair follicles on the body.