In a medium bowl, combine the cream cheese, sour cream, and ranch dressing mix. Mix until smooth and well combined.
Step 3: Add the Cheese
Fold in the shredded cheddar cheese, reserving a small handful for topping if desired.
Step 4: Chill and Serve
Transfer the dip to a serving bowl, sprinkle with the remaining cheddar cheese, and refrigerate for at least 1 hour to let the flavors meld. Serve with chips, crackers, or fresh veggies!