Grading Terminology Paper Money

UNC - Uncirculated

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-take sign of a cleaned or "doctored" note).

XF - Extremly fine

A very attractive note, with light handling. May have a maximum of three light folds or one strong crease. Paper is clean and firm, without discoloration. Corners are sharp and square without any evidence of rounding. 

VF - Very fine

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.

FF - Fine

A note that 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 will be no center hole because of excessive  folding. Colors are clear but not very bright. A staple hole or two would not be considered unusual wear in a Fine note.Overall appearance is still on the desirable side.