Is coconut oil/ fat good for you or bad for you? Organic coconut oil is good for your immune system, is antiviral, is a good alternative to butter and handles high heat very well because it oxidizes at a higher temperature than most fats. In most but not all people though it will raise total cholesterol…including bad cholesterol. Regardless of your cholesterol ratio more LDL particles is bad thing for most of us. Get your particle number tested to see how coconut oil might affect you.