Yes, rags is a Scrabble word!
...and is worth 5 points in Scrabble, and 6 points in Words with Friends
rags
Verb
1. Treat cruelly
2. Cause annoyance in; disturb, especially by minor irritations
3. Play in ragtime
4. Harass with persistent criticism or carping
5. Censure severely or angrily
6. Break into lumps before sorting
Noun
1. A small piece of cloth or paper
2. A week at British universities during which side-shows and processions of floats are organized to raise money for charities
3. Music with a syncopated melody (usually for the piano)
4. Newspaper with half-size pages
5. A boisterous practical joke (especially by college students)
What Scrabble words can I make with the letters in rags?
4 Letter Words
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3 Letter Words
2 Letter Words