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Paper Money Grading Terms

The International Bank Note Society has adopted numerous grading terms when ascertaining the condition of paper money. Whether a collector or a person interested in the quality of bank notes, it is best to review paper money outside a protective holder and underneath good lighting. You may need to turn the paper money at an angle to identify some imperfections.

Crisp Uncirculated Notes
- A Crisp Uncirculated (CU) note does not have any imperfections. The issuing authority, collector, public or financial institution representative has not mishandled the note. A CU note features natural sheen, is clean, has square, pointy edges and has no discoloration.
About Uncirculated Notes
- An About Uncirculated (AU) note is almost perfect. It features no creases or folds yet may display minor imperfections. In addition, an AU note may have a counting fold at the edges or a light bend in the middle. The note appears vibrant, with its original sheen and crisp corners.
Extremely Fine Notes
- Extremely Fine (XF) notes show slight handling and are not as crisp-looking as a UC note. An XF note features either one heavy fold or a total of three slight creases. It still has the original luster, and the corners may display minor rounding of the edges.
Very Fine Notes
- Very Fine (VF) banknotes might appear a little dirty. A VF note still has crisp paper but may have some color smudging. In addition, it still appears attractive yet may have a slight bit of wear and tear. Additionally, it may have several creases, horizontally and vertically.
Fine Notes
- Fine banknotes start to feel soft and are not crisp as UC notes. Fine notes have numerous creases, wrinkles and show a substantial amount of circulation. The note has color but lacks its original luster. In addition, small amounts of dirt may appear, and the note may have small tears on the edges, but this does not affect the design of the banknote.
Very Good Notes
- A Very Good (VG) note shows some abuse through circulation, yet it is still in one piece. Additionally, you can view the designs on both sides of the note in their entirety. It may appear limp, have wear and tear on the corners and some nicks in the banknote's design.
Good Notes
- Good (G) notes display a heavy amount of damage due to an extended time in circulation. They feature numerous creases, folds, holes, discoloration and pinholes. These notes are still intact and may have small amounts of graffiti.
Fair Notes
- A Fair banknote appears heavily damaged. It looks dull, dirty, faded and limp. Some pieces of the banknote may be torn or missing
Poor Notes
- Some collectors refer to Poor notes as rags. This currency appears badly damaged. In addition, these banknotes may have markings, large holes, stains and missing pieces.

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