Learn About Basic Paper Money or Bank Note GRADING

Extracted from my coins and paper money collecting blog:


Uncirculated (UNC)

• A perfectly preserved note (100% new),

• Never mishandled by any parties.

• Paper is clean and firm, without discoloration.

• All corners are sharp and perfectly square, without any evidence of rounding.

• A UNC note will have it’s original, natural sheen and crisp.


About Uncirculated (AU)

• A virtually perfect note, with evidence of some minor handling.

• Condition may show very slight bank counting folds at a corner or one light fold through the center, but not both.

• An AU note cannot be creased – a crease being a hard fold which have “broken” the surface of the note.

• Paper is clean and bright with original sheen. Corners are not rounded.


Extremely Fine (EF)

• A very attractive note, with light handling.

• May have a maximum of three light folds or one strong crease.

• Paper is clean and bright with original sheen.

• Corners may show only the slightest evidence of rounding.

• An EF note may also have the slightest sign of wear where a fold meets the edge


Very Fine (VF)

• An attractive note, but with more evidence of handling and wear.

• A VF note may have several folds both vertically and horizontally.

• Paper may have minimal dirt, or possible color smudging.

• Paper itself is still relatively crisp and not floppy.

• There are no tears into the border area, although the edges do show slight wear.

• Corners also show wear but not full rounding.




Fine (F)

• A note which shows considerable circulation, with many folds, creases and wrinkling.

• Paper is not excessively dirty but may have some softness.

• Edges may show much handling with minor tears in the border area.

• Tears may not extend into the design.

• There will be no center hole because of excessive folding.

• Colors are clear but not very bright.

• A staple hole or two would not be considered unusual wear in a Fine note.

• Overall appearance is still on the desirable side.



Very Good (VG)

• A well used note, abused but still intact.

• Corners may have much wear and rounding, tiny nicks, tears may extend into the design, some discoloration may be present, staining may have occurred, and a small hole may sometimes be seen at the center from excessive folding.

• Staple and pinholes are usually present, and the note itself is quite limp but no pieces of the note is missing.

• A note in VG condition may still have an overall attractive appearance.



Good (G)

• A well worn and heavily used note.

• Normal damage from prolonged circulation will include strong multiple folds and creases, stains, pinholes, and/or staple holes, dirt, discoloration, edge tears, center hole, rounded corners and an overall unattractive appearance.

• No large pieces of the note is missing.

• Graffiti is commonly seen on Good notes.



Fair (F)

• A totally limp, dirty and very well-used note.

• Larger pieces may be half torn off or missing besides defects mentioned under the Good category.

• Tears will be larger and obscured portions of the note will be bigger.



Poor (P)

• A “rag” with severe damage because of wear, staining, pieces missing, graffiti and large holes.

• May have tape holding pieces of the note together.

• Trimming may have taken place to move rough edges.

• A Poor note is desirable only as a “filler” or when such a note is the only one known of a particular issue.