Preheat your oven to 350°F (175°C).
In a mixing bowl, combine cream cheese and sour cream until smooth.
Add chili to the cream cheese mixture and stir well.
Mix in garlic powder and onion powder for added flavor.
Fold in half of the shredded cheddar cheese.
Transfer the mixture to an oven-safe dish.
Sprinkle the remaining cheddar cheese on top.
Optional: Add diced jalapeños for extra heat.
Bake in the preheated oven for 20 minutes or until bubbly.
Remove from the oven and let cool for a few minutes before serving.