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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.
The 8 Most Common Causes of Itchy Red Bumps. 1  1. Allergic reactions to personal care products (especially if you started using something new) 2  2. Eczema. 3  3. Keratosis pilaris. 4  4. Rubbing from fabrics. 5  5. Bug bites. 6  6. Heat rash. 7  7. Allergic reactions to food or medicine. 8  8. Sun allergy.