I fixed the problem, but not using any of the methods I would have thought. Turns out I should have just trusted the error message, because my repository was actually corrupted. I manually copied the two commits I had made locally to another machine holding that repo, manually copied the commit messages out by hand and deleted the corrupted repo from my pi. I then re initialized a bare repo on the pi and pushed my local manually updated repo to the server which worked perfectly. I can now pull and push to it with no problems. There never was a memory issue, I checked the size of another repo I had on it and because there's a few HD videos in there, it was over 800MB in size, working perfectly.
Thank you to those who attempted to answer my question for taking the time. And to the creator of BFG - thanks for posting. I'll definitely be using your tool to clean out my repo now that I have it working again.