Im planning on recoloring some of these as bases to make my own original characters, based on what i read of your usage im pretty sure this is fine but wanted to make sure recoloring these and making them into original chars is allowed

It is definitely allowed & encouraged! That's what the PSDs are provided for. You can edit them however you like! However, the terms of use still apply to your edits of these graphics: Edited graphics, just like unedited ones, cannot be resold or redistributed by themselves.

Thank you! I hope you have a great time using these packs!