Grate the sharp cheddar cheese using a box grater.

In a large mixing bowl, combine grated cheddar with softened cream cheese and mayonnaise; mix until smooth.

Add drained pimentos, garlic powder, and cayenne pepper; stir until evenly combined.

Taste the mixture and adjust seasoning if necessary.

Transfer to an airtight container and chill in the refrigerator for at least one hour.

Serve with crackers, fresh veggies, or as a sandwich spread.