Grate the cheddar cheese and set it aside.
In a mixing bowl, combine the cream cheese and mayonnaise until well blended.
Add in the grated cheddar cheese, diced pimentos, garlic powder, onion powder, cayenne pepper, salt, and pepper to the mixture.
Mix all the ingredients until well combined.
Cover the bowl with plastic wrap and refrigerate for at least 1 hour to allow the flavors to meld together.
Serve as a dip for chips, spread on sandwiches or burgers, or enjoy on its own!