I applied for Amex Surpass card, and for the first time I receive a message saying they couldn't approve me. I call in, and after quite a bit of hold, the rep says I am denied because I currently have a card in same Hilton family (I have regular Amex HHonors card, never had Surpass before). She said I will also receive a letter stating same thing.

Is this correct? I thought I could apply for Surpass card while currently holding regular Amex HHonors card. Should I cancel my regular no-AF version and apply again?

If it matters, I currently have 4 Amex credit cards and 1 Amex charge card. However, I was approved for personal Amex Delta in January, and approved for Amex Blue for Business in February. I didn't think business app would count against me so I applied for the Surpass.

Thanks in advance.