Banknote Grading Guide: How Paper Money Condition Works

What banknote grading measures

Grading describes a note’s state of preservation. Collectors examine circulation wear, folds and creases, paper body, color, centering, margins, corners, embossing, handling, stains, tears, pinholes, repairs, trimming, and other problems.

The same inspection also helps document originality, repairs, pressed folds, altered surfaces, paper problems, and security characteristics.

Common descriptive grade bands

• Poor / Fair: heavily worn or damaged; parts may be missing and identification can be difficult.
• Good / Very Good: clearly circulated with folds, softness, soiling, or edge wear, but the main design remains identifiable.
• Fine / Very Fine: moderate circulation with visible folds; paper and design retain more strength and detail.
• Extremely Fine: light circulation and a small number of folds, with strong color and paper quality.
• About Uncirculated: very limited handling, often with a light fold or minor disturbance that prevents an uncirculated grade.
• Uncirculated / Choice / Gem: no circulation folds, with progressively stronger centering, margins, paper quality, and eye appeal.

How the 70-point scale fits in

Professional grading companies commonly use a 1-to-70 numerical scale. PCGS describes 70 as a perfectly centered note without handling or print imperfections, while progressively lower numbers reflect centering, handling, folds, circulation, and damage.

Published grading standards connect those numbers to specific combinations of centering, handling, folds, circulation, and damage.

Inspect a note systematically

• View the note flat under diffuse light, then at a shallow angle to reveal folds, ripples, and surface disturbance.
• Check front and back for stains, writing, tape, repairs, pressing, thinning, and missing paper.
• Inspect corners and edges for rounding, tears, splits, trimming, and handling.
• Compare centering and margins without assuming an off-center print is damage; manufacturing standards vary by issue.
• Record every problem before assigning a broad condition band.
• Avoid cleaning, ironing, pressing, erasing, or repairing the note yourself.

Original paper quality and problem grades

A note can look bright while having been washed, pressed, repaired, or chemically treated. Professional graders may use qualifiers for original or premium paper quality and may assign a details or problem designation when damage exceeds what the numerical grade alone communicates.

Money AI can organize those visible condition clues, keep detailed photos with the scan, and help you ask more specific grading questions.

Photographing condition for a second opinion

• Capture full-resolution front and back images with the note square to the camera.
• Add raking-light photographs from both directions to expose folds and surface texture.
• Photograph tears, repairs, stains, pinholes, and corners close up.
• Do not hide damage with editing, glare, or a busy background.
• Keep the note in a safe inert sleeve after documentation.

Examine the note in a consistent order

A consistent inspection prevents an attractive design from distracting you from condition problems. Begin with the complete note under diffuse light, then examine the paper at a shallow angle, inspect both sides under magnification, and finish with transmitted light. Record observations before choosing a grade range.

Use clean, dry hands and hold stable notes by the edges. Keep fragile or valuable notes in an inert holder when possible. Never test paper strength by bending it, and do not rub suspected dirt or residue. The inspection should document the note as it exists, not change it.

• Overall eye appeal, color, centering, margins, and completeness.
• Vertical, horizontal, diagonal, and corner folds under angled light.
• Paper body, limpness, embossing, surface sheen, and evidence of pressing.
• Corners, edges, tears, splits, missing areas, and trimming.
• Stains, rust, ink, pencil, tape, adhesive, pinholes, and repairs.
• Watermark area and thin spots under transmitted light.

Understand folds, handling, and paper originality

Problems can matter more than the numerical grade

Two notes with similar circulation can have very different desirability when one has a tear, repair, stain, or missing corner. Grading services may use qualifiers or comments to describe problems that are not fully expressed by the number. Read the complete label and inspect the note rather than comparing numbers alone.

Repairs range from obvious tape to skillful paper fills, recoloring, or rebuilt corners. Transmitted light and magnification can reveal thickness changes, adhesive, or altered fibers. Suspected restoration is a reason for professional examination, especially when the note is scarce or expensive.

• Edge splits, internal tears, missing pieces, and pinholes.
• Rust, mildew, water stains, chemical stains, and ink annotations.
• Tape, adhesive residue, paper fills, recoloring, and reconstructed corners.
• Trimming, mounting remnants, lamination, and removed backing.
• Pressing, washing, bleaching, or other surface alteration.

Use the 70-point scale as a shared language

Professional services use a 70-point numerical framework paired with descriptive grade bands. The number is not a simple percentage. Most circulated notes occupy lower and middle bands, while the highest uncirculated grades require strong paper quality, margins, centering, and eye appeal with no circulation folds.

Learn the descriptive progression before trying to assign a precise number. Poor, Fair, Good, Very Good, Fine, Very Fine, Extremely Fine, About Uncirculated, and Uncirculated describe recognizable condition ranges. Numerical distinctions within a band can depend on subtleties that are difficult to evaluate from ordinary photographs.

For value research, use a conservative range such as Very Fine to Extremely Fine until the note is examined in person. Compare sales across that range instead of choosing the most favorable grade. The old banknote value guide explains how to normalize comparables.

Decide whether professional grading is worthwhile

Certification can add confidence, protection, and a standardized market description, but it also adds submission fees, shipping, insurance, and time. It is most useful when authenticity or a narrow grade difference materially affects value, when the note is difficult to sell raw, or when long-term encapsulation matters.

Estimate the likely raw value, plausible certified grades, certification cost, and expected certified value before submitting. A common note may not recover the cost even if it receives a strong grade. A scarce variety or high-grade note may benefit because buyers can compare it more easily.

Photograph the note before submission, including front, back, serial number, and existing damage. Save purchase information and provenance. Money AI can help organize visible condition notes and the identification, but it does not replace authentication or an official grade.

Know what photographs can and cannot show about grade

Straight-on photographs show centering, margins, missing areas, stains, writing, and many tears. Angled light reveals folds, surface disturbance, embossing, and paper waviness. The banknote photo workflow explains how to capture these views without distorting the note.

Photographs still flatten texture and can hide pressing, washing, odor, stiffness, edge work, and subtle repairs. Camera sharpening can exaggerate fibers, while bright exposure can make a washed note look cleaner than it is. Plastic holders introduce reflections and may conceal edge splits.

Use photo-based observations to choose a broad descriptive range and identify problems that need closer inspection. Do not advertise a precise professional grade unless a recognized service assigned it. When buying remotely, request front, back, angled, edge, and transmitted-light views before relying on a seller’s description.

A good record separates observation from conclusion: “two vertical folds and one edge split” is evidence; “Very Fine” is an interpretation. Keeping both makes later comparison more transparent and helps another collector understand why the range was chosen.

Frequently asked questions