D3 does not raise your cholesterol. I've been taking it for over a year, and my cholesterol (total and LDL) fell 20 points with no changes to diet or exercise. My brother takes 5000 IU a day, and his cholesterol is fine.

I also took K2-MK4 during that time. The combination of the two is supposed to help prevent plaque buildup by directing more calcium to the bones. I have read stories of some people having trouble (irregular heartbeat) with the MK7 type, but nothing definitive. The main difference from my understanding is that MK7 has a longer half-life. My method is to take some MK4 in the morning, and some at night.