most people like somewhere around a 2 inch drop to kill the fender gap. 3" is where you start to really tuck, and have oil pan meeting pavement problems.
either some springs and decent shocks, or a cheaper set of coilovers, like the k sports would probably be good for you. dropping 2" or more definitely will kill stock shocks very quickly. i have had experience with eibach, megan, and h&r springs personally. they are all progressive springs that offer a pretty nice ride for the street. one thing you will find, is that a decent set of shocks paired with springs or decent coilover sleeves (like ground control), will cost you about the same as many of the entry level full body coilovers.