you must tell me how you did the rusty areas:)
instead you can do better the "holes" on the white text in this way (little trick i discovered after some trials):
when you have done all the texture, as last step, duplicate the text and make one of the 2 layers invisible (so you have a backup)
then rasterize the layer that is visible
press "q" (quick mask)
now you can use all the paintin tools but as result instead of painting with the selected color you will paint with a red color over the layer, and more important you can set the opacity for any single brush stroke using the pressure parameter(so you will have red strokes partially transparent)
after painting press again "q" and you will exit quick mask mode
the red strokes will disappear and they will be transformed in selections
if you cut now the selected pixel you will make nice holes and scratches
the result will be like the scratches on the red band in this pic:
the point is that the holes will be more "smoothed", less defined, with a better general appearance
there are other ways to be honest (like using the feather option while selecting) but this is the better because in quick mask mode you can have an idea of the final result and because its easyer to give the scratches the shapes you prefer
if you don't want to rasterize the layer you can apply same process on the background, make layer via cut and bring it over the text, but i suggest to use the "normal" method
you can use also gradients in quick mask mode to make an "opacity gradient"
