Well, do quests. It raises relationship with people and increases your Charm level. Clearing out bandit hideouts is also one of the possible options. But doing barters should also increase your Charm, so make sure you have enough Focus points in it.
Lesbosisles is right. Destroying bandit hideouts is a quick way to earn charm experience. It's also a good way to pick up warhorses if you hit a big hideout and clear it.
It is indeed the easiest and quickest way to level up the Charm, but you have to become a vassal to do so. If talking about an early game, this option won't be available until the certain requirements are met.
Which makes nada sense, but please don't tell TW that or they'll spend all their time minutely tweaking that system instead of fixing the glaring content holes.
Any action that increase your relationship with any npc do also increase your charm whether it be a quest, bandit hideout or releasing lords after battle.
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