How important is suit for interview?

For those who have interviewed other people: have you ever dinged someone because of their suit? I'm not talking about someone who looks like they're wearing a garbage bag, but like say their suit isn't exactly the right fit and looks kind of cheap.

I already have a suit which I think looks decent but jacket length is a bit short, but I'm not sure if its worth spending 400 to buy a new suit and tailor it since I feel like most interviewers won't care as long as you look decent. Thoughts?

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