Is “Cheddar” a Scrabble word?

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Yes
CHEDDAR
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Valid

Meaning of Cheddar

/ˈtʃɛdə(ɹ)/

noun
  1. 1.A cheese styled after the Cheddar cheese made in Cheddar.

  2. 2.Money, cash, currency.

verb
  1. 1.(cheese making) To cut and press cheese so as to remove the whey and leave drier curds.