Grading Standards
Grading standards as set forth by Albert Pick in his Standard Catalog of World Paper Money.
Grading Tools: Gloves - Magnifier - Black Light
POOR   (PR) A "rag" with severe damage because of wear, staining pieces missing, graffiti, and/or larger holes. May have tape holding pieces of note together. Trimming may have taken place to remove rough edges. A poor note is desirable only as filler or when such a note is the only one known of that particular issue.
FAIR   (FR) A totally limp, dirty and very well used note. Larger pieces may be half torn off or missing besides the defects mentioned under good category. Tears will be larger, obscured portions of the note will be bigger.
GOOD   (G) A well worn and heavily used note. Normal damage from prolonged circulation will include strong multiple folds and and creases, stains, pinholes and/or staple holes, dirt, discoloration, edge tears, center hole, rounded corners and an overall unattractive appearance. No pieces of the note may be missing. Graffiti is commonly seen on notes in good condition.
VERY GOOD   (VG) A well used note, abused but 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 center from excessive folding. Staple holes and pinholes are usually present, and the note itself is quite limp, but NO pieces of the note can be missing. A note in very good condition may still have an overall attractive appearance.
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 can be no center hole because of excessive folding. Colors are clear and bright. A staple hole or two would not be considered unusual wear on a fine note. Overall appearance is still on the desirable side.
VERY FINE   (VF) An attractive note, but with more evidence of handling and wear. 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.
EXTRA FINE   (XF) 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 sign of wear where a fold meets the edge.
ALMOST UNCIRCULATED   (AU) A virtually perfect note, with some minor handling. May show very slight evidence of bank counting folds at a corner or one light light fold through the center, but not both. An almost uncirculated note cannot be creased, a crease being a hard fold which has usually broken the surface of the note. Paper is clean and bright with original sheen. Corners are not rounded.
UNCIRCULATED   (UNC) A perfectly preserved note, never mishandled by the issuing authority, a bank teller, the public or a collector. Paper is clean and firm, without discoloration. Corners are sharp and square, without any evidence of rounding. (Rounded corners are often a tell-tale sign of a cleaned or "doctored" note) An uncirculated note will have it's original natural sheen.
CHOICE UNCIRCULATED (CU or ChCU) CHOICE CRISP UNCIRCULATED (CCU) GEM UNCIRCULATED (Gem UNC) There are several grades of uncirculated now being used and recognized. These variants deal primarily with centering, with Gem UNC being the best with as perfectly centered face and back printings as possible.
THIRD PARTY GRADING COMPANIES (CGC) (CGA)  If you are not comfortable with your grading capabilities and do not want to purchase a lemon, you may purchase an independently graded slab or encapsulated specimen. This type of note usually commands a higher price due to the cost of encapsulation and guaranteed grade.