Need upgrade on my current system

I would visit Newegg's site and decide on a video card/PSU combo that fits that budget. Highly recommend upgrading the OEM PSU when using discrete graphics.
Later on you could upgrade the RAM, as well, max it out. With these 3 upgrades you will have a new PC.
 

AdrianPerry

Distinguished
Adding a graphics card to the PCI x16 slot is likely your best option.

However the build spec you listed only has a 300w PSU meaning your options are fairly limited. I also have no idea if your PSU has a 6pin PCI connector in order to actually power a PCI GPU.