Making the Grade: Learn how to grade your old paper money. Free grading guide.

Jon Warren

The iGuide Grading Guide provides several layers of depth to appeal to both new and advanced collectors alike. We suggest "report card" grades which we hope will help non-experts. Grading should be easy but too often for new collectors it is not. A term like MINT is vague for newbies. But grade A makes sense to anybody who has ever received a report card. The iGuide Grading Guide provides our so-called "report card" letter grades from A+ to F, as well our our 1 to 10 numeric grades (on a scale of 1 to 10) and then the standard grades used by many collector books. These grades attempt to describe preservation state. They follow rules used by collectors for years to keep things clear when buying, selling, or talking about items. Grading helps with consistency in buying, selling, and advertising. Proper grading takes a lot of experience and is more an art than a science, so we hope this guide will help you get started as you learn how to MAKE THE GRADE.

Grading for beginners

Like coins, stamps, sports cards, movie posters, and everything else that people collect, currency is valued according to condition. Because human beings prize things that glitter, the more like new it is, the more collectors will pay for it. Seems simple enough, right? WRONG! Because arguing about condition actually means negotiating price, buyers and sellers often have a hard time agreeing on grade. But, fortunately, standard terms exist that everyone agrees on (what those terms mean is another story). Sadly, it takes years of looking at thousands of variations before you can truly become a knowledgeable grader. So how do you know what grade it is in if you are new at making the grade? Let me suggest that you start simple and then hone in on the final grade.

First let's look at some general terms that could be used to describe the condition of these things, then we'll cover some specialized terms that dealers and collectors use.

PERFECT

We all know what this is, something in brand new condition. A brand new note that has never been used is probably in PERFECT, like-new condition. The term for perfect condition is MINT. Although some dealers will try to convince you that 100 year old notes are not graded as strictly as newer ones, I would not believe it if I were you. When it comes to PERFECT, new is new, period.

ABOVE AVERAGE

If someone obtained a note, handled it carefully once or twice, and then carefully filed it away, it is in ABOVE AVERAGE condition. We refer to notes in above average condition as CHOICE UNCIRCULATED (abbreviated CHOICE BU).

AVERAGE

The term collectors use to describe AVERAGE condition is VERY GOOD (or VG for short). Since currency was meant to be used and carried, those notes that have been handled are in average condition. Minor creases, folds, wear, pin holes — these are flaws that are typical from normal use and is both common and acceptable in an AVERAGE USED note.

BELOW AVERAGE

Notes that you carried and in circulation for a long time are probably in BELOW AVERAGE condition because circulation beats the @@#$!! out of paper money. And it looks it! The note is still complete but with heavy wear and probably lots of creases and tiny tears from careless storage. In other words, notes in BELOW AVERAGE condition look ROUGH! Collectors describe a note in below average condition as GOOD. Actually, there's nothing good about it other than the fact that you have one to keep until a better one comes along.

POOR

Better known by the technical term "crap" first coined by a dealer named Steve Geppi. A note in poor condition looks like it was rescued from the trash can of history...and probably was. You know you have handled a poor condition note when you rush to wash your hands afterwards. Poor means TERRIBLE!

Now that you know the five basic ranges of condition, it's much easier to focus in on exactly what the real grade is. Try it yourself. Take a stack and grade them. Is the first one just like the day it was printed except for a tiny crease on a corner? Then it's not PERFECT, but you could certainly say it's ABOVE AVERAGE. Put it in the ABOVE AVERAGE stack. Does the next one look carried and circulated? Put it in the AVERAGE stack. Continue sorting into basic grades. When you are done, refer to the following detailed grading descriptions. Start at the lowest grade and work your way up. Think in terms of report grades A+ to F with AVERAGE being a C, or a 10 scale from 0 to 10, with AVERAGE being a 5. The one that sounds closest to the grade of the item in hand is the actual grade.

Now let's look at the technical grading terms collectors use to describe condition. At trade shows and on eBay you will see these grades and grade-codes used to indicate grade. Memorize them, learn what they mean, and then you can start MAKING THE GRADE like a pro.

Uncirculated Grades

The term UNUSED refers to a note that has never been in general circulation. It has never been folded, carried, or torn and is in unused condition. The unused grades range from a perfect A+ to B- which is an unused note showing faint signs of wear.

The Importance of Accurate Grading

The phrase "Condition, Condition, Condition" is often heard among currency dealers and collectors, emphasizing the importance of this factor in determining value. Accurate grading allows for a fair assessment of worth, helping buyers and sellers reach a mutual agreement on price. However, it’s important to note that different grading systems exist, so understanding the specific standards used is essential to avoid confusion.

This being said, writing a good grade description is more of an art than a science. One can be too brief, or too comprehensive, with equally bad effect. If too brief, the reader has an eerie feeling of uncertainty which causes the buyer not to buy. Too much detail, and the opposite can happen: the buyer imagines the accumulation of flaws in the description of every tiny flaw and pictures an item in horrible shape, when this is not the case.

Collecting currency is a well-established hobby going back decades. It has established a set of grade terminology that all market participants use to describe the condition of their notes. So-called Third Party grading services such as PCGS and NGC provide certified grades that meet the standards set by the market. The following grades are the well-established grades provided by the American Numismatics Association.

A+

70 EPQ Gem Uncirculated
10 on a scale of 1 to 10.
Perfect. Brilliantly clean, crisp, bright, sharp corners, deep color. The highest grade possible. Notes must have no evidence of handling visible at 5x magnification. The margins and registration must appear centered to the unaided eye.

The 70 grade represents an extremely rare state of preservation and should NOT be used unless the item is absolutely perfect!

The item exhibits an amazing state of preservation with virtually no perceptible flaws of any kind, other than very minor flaws which may have occurred during the printing process.

A+

69 EPQ Superb Gem Uncirculated
10 on a scale of 1 to 10.
This note is nearly visually indistinguishable from a 70 but the margins and registration may appear slightly off center. There is no evidence of handling visible to the unaided eye.

A+

68 EPQ Superb Gem Uncirculated
10 on a scale of 1 to 10.
The margins and registration are slightly off center. There may be very minor handling.

A+

67 EPQ Superb Gem Uncirculated
10 on a scale of 1 to 10.
A note with above-average margins and registration. There may be minor handling.

A

66 EPQ Superb Gem Uncirculated
9 on a scale of 1 to 10.
There may be slightly more handling than a 67 EPQ note. The centering must be above average.

A

65 EPQ Gem Uncirculated
9 on a scale of 1 to 10.
The note may have one or two minor distractions as a result of minor handling. The centering must be above average.

A

64 Choice Uncirculated
9 on a scale of 1 to 10.
The centering is off on one or two sides. Some handling may be evident but there must be no creasess in the design.

A

63 Choice Uncirculated
9 on a scale of 1 to 10.
The centering is imperfect and the design may be flat. There may be several flaws but there will be no folds.

A-

62 Uncirculated
8 on a scale of 1 to 10.
The note is strictly uncirculated but may have minor-to-moderate handling and/or corner tip issues. There will be no folds, however. The margins may touch or come into the design.

A-

61 Uncirculated
8 on a scale of 1 to 10.
The note is poorly centered and the margins come into the design. There may be counting marks, smudges or other signs of handling. There will be no folds through the design.

A-

60 Uncirculated
8 on a scale of 1 to 10.
A note with problems that may include toned paper, a small stain or fading. There will be handling issues but there will be no folds through the design.

B+

58 Choice About Uncirculated
7 on a scale of 1 to 10.
Barely circulated. Appears uncirculated but upon close inspection, it apparently has been lightly circulated. Often a note with a single fold that crosses the design.

B+

55 About Uncirculated
7 on a scale of 1 to 10.
Barely circulated. This grade is commonly assigned to a note that has one fold or two to three corner folds through the design.

B

53 About Uncirculated
7 on a scale of 1 to 10.
Barely circulated. Clean, crisp, sharp corners, good color. Two or three very light almost invisible vertical folds.. Minor signs of handling.

B-

50 About Uncirculated
7 on a scale of 1 to 10.
Barely circulated. Sharp, crisp, clean, strong color. The note can have two heavier folds or light horizontal and vertical folds. The handling can be noticeable.

Circulated Grades

The term USED refers to a note that has been in general circulation. It has been folded, carried, or torn and is in obviously circulated condition. The used grades range from a C+ down to F which is a used but showing heavy signs of wear.

C+

45 Choice Extremely Fine - Circulated
6 on a scale of 1 to 10.
Barely circulated. Minor discoloration and wear, crisp, fairly sharp, decent color. A note with two to three heavy folds, one of which may be horizontal.

C+

40 Extremely Fine - Circulated
6 on a scale of 1 to 10.
Lightly Circulated. Noticeable discoloration and wear, weakening paper, minor corner wear, good color. There are three or more folds, one of which may be horizontal.

C

35 Choice Very Fine - Circulated
5 on a scale of 1 to 10.
Lightly Circulated. For years dealers and collectors called this grade VF-XF. This note looks Extremely Fine, but it will have four to seven light creases.

C

30 Very Fine - Circulated
5 on a scale of 1 to 10.
Lightly Circulated. This note will be circulated and may have light soiling. Can have up to seven to ten folds.

C

25 Very Fine - Circulated
5 on a scale of 1 to 10.
Moderately Circulated. A note that shows modest evidence of circulation as well as more folds and/or soiling than a note graded 30.

C

20 Very Fine - Circulated
5 on a scale of 1 to 10.
Moderately Circulated. The note is moderately circulated with numerous folds, mild soiling. There are no serious detractions but there may be minor defects.

C-

15 Choice Fine - Circulated
5 on a scale of 1 to 10.
Moderately Circulated. This note may look like a Very Fine note, but upon closer examination it is found to have too many folds or too much circulation to warrant a Very Fine grade.

C-

12 Fine - Circulated
4 on a scale of 1 to 10.
Rough Circulated. Evidence of circulation is considerable with rounded corners, margin splits and other issues. The note must be whole with solid paper.

D

10 Very Good - Circulated
3 on a scale of 1 to 10.
Rough circulated. A solid, whole note with lots of circulation. The note is limp and has a number of minor problems.

D

8 Very Good - Circulated
2 on a scale of 1 to 10.
Rough circulated. The note is heavily circulated but is intact. Some small pieces may be missing. Soiling, light stains or splits are common for this grade. The note is limp.

F

6 Good - Circulated
1 on a scale of 1 to 10.
Poor, rough circulated. The note is very worn with serious splits, fraying of the margins and damage.

F

4 Good - Circulated
1 on a scale of 1 to 10.
Poor, rough circulated. A very heavily circulated note with numerous problems. It is totally limp with impaired visual appeal. Notes in this grade are commonly seen with pieces missing.

Descriptions

Here are some typical descriptions we see in the marketplace. Note the arrangement of descriptive detail, and choice of upper/lowercase notation.

GEM UNCIRCULATED sharp corners, crisp, rich color, no folds, no tears, no pinholes, no visible wear

CHOICE UNCIRCULATED Barely circulated. Clean, crisp, sharp corners, good color, no folds, no tears, no pinholes --- see photos

ABOUT UNCIRCULATED Barely circulated. Clean, crisp, sharp corners, good color, no folds, no tears, no pinholes --- see photos

EXTRA FINE CIRCULATED

VERY FINE CIRCULATED. noticeable wear and wrinkling, good color, numerous folds, no tears, no pinholes --- see photos

FINE CIRCULATED fairly clean, well worn with noticeable folds, no tears, no pinholes --- see photos

VERY GOOD CIRCULATED well worn, numerous folds, minor edge tears, no pinholes --- see photos

ROUGH CIRCULATED discolored and well worn with numerous folds, edge erosion, and edge tears --- see photos

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