I'm going to agree in part with the above post about networking. But first, a little background:
1. My undergrad GPA was LESS than a 3.0.
2. I had very good graduate grades from a mid-tier public university.
3. I had good grades from a selective private law school.
4. I had 2 years of sales experience, 2 years of teaching (university-level) experience, and 2 years of publishing experience. During law school, I worked for two firms year-round.
In the grand scheme of things, I really only have one thing going for me: work experience. The first time I applied to PhD programs (2005), I got one waitlist and four rejections. Needless to say, I wasn't a good candidate at that point (only halfway through MA), but the kiss of death was my application strategy. I basically applied to schools where I wanted to live, all of which were state schools on the other side of the country. Hmm. Well, after a professor told me that most schools have to take 75-85% of their funded grad (PhD) students from IN-STATE applicants, I reconsidered my strategy for this round of applications.
Instead of going from the "top" down (and I'm doing Rhet/Comp, so my "top" isn't Lit "top" anyway), I started with newest/most willing to take "students transitioning from other professional programs" first. I picked one from the "bottom barrel" (one I was SURE would take me), two from the middle (both in-state for me), and one from the top of the middle. I have at least one reference who is a graduate of or professor at these programs, so I asked them what they looked for (as professors) or how they got into those programs. Most of them said knowing someone REALLY helped and that visiting schools (if you can) to make an in-person appearance, watch a class, talk to faculty, etc helped. If your end goal is to teach, your personality DOES matter. It may not totally replace shitty grades, but I have yet to hear a program head say that they'd prefer the "smarter" person who can't interact with students over the "less academically accomplished" person who gets great course reviews and can (gasp) even make new friends at conferences. Again, I'm not in Lit, but I really do think that letting an admissions member put a name with a face and LIKE you will get you the acceptance if you're on the fence.
And FWIW, just because a program is "the best" doesn't mean that you'll get a better job, better teaching/research/publication opportunities, or better overall experience. You may. But you may also want to consider applying to a program or two that you think might feel lucky to have you. Sometimes the big fish in the small pond has the best chance of standing out...JMO.