Agreed on the razor burn. Refrain from irritating it further, exfoliate it gently in the shower using a loofah, and it should be fine soon.

The "blisters" sound like they could be staph infections--I've gotten staph infections there, at the crease of my leg, right after shaving. They're hardish, shiny bumps that don't hurt when touched. Dab some neosporin on them and they should get better.