Grading Guide · Numismatic Reference · Updated September 2026

Banknote Grading Scale Explained: What VF, XF, AU, and UNC Mean

Every dealer listing, auction lot, and grading label uses the same short alphabet: G, VG, F, VF, XF, AU, UNC. Here is what each grade means in plain terms, how the letters map to the 70-point numbers on a PMG or PCGS holder, and how to grade a note in your own hands before you pay for someone else's opinion.

What are the banknote grades, from lowest to highest?

The adjectival grades below follow the International Bank Note Society's grading standard, which is the framework most dealers and both major grading services build on. The numeric ranges are how PMG and PCGS Banknote express the same condition on their 70-point scales.

The numeric ranges are conventions, not law. Each service publishes its own scale and reserves the right to assign any number it sees fit. The pattern holds across both.

What is the difference between AU and UNC?

One fold. That is the whole difference, and it can be the difference between $80 and $180 on the same note. An uncirculated note has never been folded, creased, or counted with a flick of the thumb. An About Uncirculated note is the same note after one of those things happened once. It may look identical in a photograph. Under raking light, tilted toward a lamp so the light skims across the surface, the fold shows as a faint line and the paper's original embossing breaks across it.

This is why "UNC" in a listing means something specific and "looks uncirculated" means nothing. The PMG 70-point scale guide goes into how the graders split 60 through 70, but the AU/UNC line is the one that matters most to the price.

Every grade above Very Fine is a statement about what has not happened to the paper. Every grade below it is a statement about what has.

What do EPQ and PPQ mean on a graded note?

They mean the paper is original. EPQ is PMG's "Exceptional Paper Quality" designation; PPQ is PCGS Banknote's "Premium Paper Quality." Both certify that the note has not been washed, pressed, trimmed, repaired, or otherwise altered to look better than it is. A note can be a genuine 65 and still miss the designation if a previous owner ironed out a fold, and the market prices that miss hard. On modern world notes, a 65 without EPQ or PPQ is usually a sign that something was done to it.

The two services and their designations are compared in our PMG vs. PCGS guide.

How do you grade a banknote at home?

You will not match a professional grader's precision, but you can place a note within one grade with a lamp, clean dry hands, and five minutes. Work through these in order.

1. Raking light for folds. Hold the note nearly flat and tilt it toward a single light source. Folds and creases appear as lines or shadows that are invisible straight-on. Count them. Zero means you may have an UNC; one means AU; two or three light ones mean XF; more than that and you are at VF or below.
2. Corners. Sharp and square, or rounded and soft? Rounded corners mean circulation even when the folds are hard to find.
3. The snap test. Hold the note by one end and let it flex. Original, uncirculated paper is stiff and springs back. Circulated paper is limp. Washed paper feels oddly soft and slightly fuzzy.
4. Pinholes and tears. Hold the note up to a window. Pinholes from staples and pins show as bright dots; edge tears show as bright lines. Either one caps the grade.
5. Surface. Look for soiling, stains, foxing spots, ink marks, and pencil annotations. Any of these lowers the grade below what the folds alone would give.
6. Centering and margins. This does not change the adjectival grade, but it is what separates a 64 from a 67 once a note is uncirculated. Even margins on all four sides earn the top numbers.

What is a net grade, and why does a note say "apparent"?

When a note has a problem beyond ordinary wear, the graders say so. PMG uses "Net" and lists the issue: "Net 58, minor rust." PCGS Banknote uses "Apparent" with a note about the defect: "Apparent 40, small edge tear." Both mean the note would have graded higher on wear alone, but a specific flaw pulls it down. Net and Apparent notes trade at a discount to clean notes of the same number, and dealers who describe raw notes honestly do the same thing in words: "XF, small ink mark on reverse."

Which grade should a collector buy?

For modern world notes, including all of the hyperinflation issues from Zimbabwe, Venezuela, and Hungary, uncirculated is the standard because uncirculated notes are still available in quantity. Paying for a VF modern note rarely makes sense. For older notes, and anything printed before about 1950, VF is often the realistic ceiling for what exists, and a well-centered XF is a prize.

The choice between buying a raw UNC note and paying for a graded one depends on the note and what you plan to do with it. Our raw vs. graded guide lays out when the holder is worth the premium.

Frequently asked questions

What does UNC mean on a banknote?

Uncirculated. The note has never been folded, creased, counted, or handled in a way that left a mark. Corners are sharp and the paper retains its original surface. On the 70-point scale, UNC runs from 60 to 70.

What is the difference between XF and AU?

XF (Extremely Fine) allows up to three light folds. AU (About Uncirculated) allows one. Both keep crisp paper and sharp corners; the fold count is the difference.

Is EF the same as XF?

Yes. EF and XF both mean Extremely Fine. British and European dealers tend to write EF; American dealers and both grading services write XF.

What is a Gem Uncirculated banknote?

An uncirculated note graded 65 or 66 on the 70-point scale: well centered, sharp corners, clean surfaces, original paper. Superb Gem is 67 and above.

Can a folded note still be graded UNC?

No. A single fold takes a note out of uncirculated and into AU at best. This is the most common mistake in self-graded listings.

Does washing or pressing a note improve its grade?

It lowers it. The graders detect processed paper and withhold the EPQ or PPQ designation, and the market discounts the note accordingly. Leave the paper alone.

What grade is a "crisp" note?

"Crisp" describes the paper, not the grade. An XF note can be crisp. Dealers who write "Crisp UNC" mean uncirculated with the original paper snap; "crisp" on its own promises nothing about folds.

Sources

• International Bank Note Society, Grading Standards
• PMG (Paper Money Guaranty), Grading Scale and EPQ designation
• PCGS Banknote, Grading Standards and PPQ designation
• Planet Banknote grading practice, 15+ years of hand-grading world paper money