What is the best way to improve a credit score?

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1. Its always best to have 4 revolving credit cards, whether its a department store card, or credit cards, four is always best. And make sure you pay your minimum and on time. Also do not have more than 50% of the available balance taken up. 2 years of paying on time, and no higher than 50% of your credit line, and you'll have some shining credit. Also make sure that there are no delinquency in the past haunting your credit. Take of those immediately. As well as car payments and student loans, pay accordingly, and when your done paying those off, your credit will get a jump.
2. Since you saying you want to improve it, would that mean you already know what your credit score is and that you need to address it. 1) If you have charge offs, you need to get them satisfied. Once you have, request a letter of satisfaction from the creditors. These letters will be worth more than gold to you in the next 7 years. So keep them in a safe location so you can present them if requested or if you have to dispute those charge offs. This also go for judgments and any collections. 2) You need to re-establish your credit history. If you have applied and been denied credit, then your only alternative would be a secured credit card. You will have to supply a deposit for collateral, however you should be able to obtain one. Again, don't have a balance more than 50% of the credit limit, and always pay the minimum each month. You should have 4 trade lines (credit cards). I would not suggest that you get a department store credit card since most of them do not report to all three credit bureaus. Also it limits your ability to use them since you can only use them at the store that they belong to. 3) Do not have your credit report pulled after you have set up your credit cards. If you are interested in knowiing your credit scores, you can always to Equafax, Extperian, and Transunion's website have pay for a FICO report that will not effect your score. If you get your credit pulled from lender, they might not tell you where you stand on the score and it effects your score at the same time. Hope this helps.
3. Go to www.myfico.com and look in the Credit Education section to see how FICO credit scores are calculated. Improving a score consists of two things: 1) removing negative information. 2) adding positive information. Removing negative information will have an immediate effect on your credit score. Adding positive information will take 6-12 months to raise your score. If you want your credit to be in the Excellent category (FICO score 720+) then your goal should be to have 3-6 revolving accounts(dept. store, gas cards, Visa. etc.) and 1-2 installment loans(car, mortgage) that are reporting positively. Good Luck