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how to create a grunge text effect in Photoshop add some text and scale it up then pick a font for this Im using compactor pop it in the center grab a rust texture desaturate the image and adjust the levels to bring the shadows and highlights closer together to create more contrast select all and copy and paste this into the main document and then using free transform resize the texture so it covers your text hold alt or option and click to add a clipping mask and then further adjust the levels until you get something youre happy with repeat these steps to add more texture and if youd like maximum contrast with none of the gray add a threshold adjustment layer next lets add a background color and immediately you can see the problem we have to fix this select the text layer and change the blending mode to something like screen and now thats fixed lets go back to black select and delete the background layer and then group the remaining layers and give the group a name lastly add a