Peterson described herself as a solo artist in her early years – "I was a kid who brought her guitar to every sleep-over and summer afternoon in the park to play her newest creation to anyone who would listen…"[2] In high school she formed a band that went through various incarnations as Crista Galli, Aishi, the Muze, the Fans, and Those Girls from 1976 to 1980.

In addition to performing their own material, the Psycho Sisters freelanced as backing singers (Steve Wynn's Fluorescent, Giant Sand's Center of the Universe), and Peterson has contributed harmony vocals to recordings by the Hoodoo Gurus, John Doe, Tom Petty and Belinda Carlisle.

In August 2014, after playing together as the Psycho Sisters for more than 20 years, Peterson and Susan Cowsill released their first album, titled Up on the Chair, Beatrice.

[6][7] In 2017, she and John Cowsill joined Bill Mumy as the band Action Skulls to release an album (also including posthumous contributions from the bassist Rick Rosas) titled "Angels Hear".

Her next few guitars would be a double cutaway Univox Ripper, a 1972 Gibson Les Paul Custom and a 1967 Fender Stratocaster, which she used on many of the Bangles early recordings.