I mean, this was the norm years and years ago and still can happen on a manual review. If declined at chase and you recon, they're going to ask that same question along with others. If it's a smaller cu, it could be a step in fraud or loss mitigation. Shutting down all your accounts because you took an HP on a denial is a knee jerk reaction. It's just an HP. Won't be counted in a year, will disappear in two.
Welcome to My Fico Forums, @doctormyers. 
Keep in mind that this is a smaller regional credit union. They lend differently from large national banks. Some are more conservative than others in various ways, but being asked your intentions about adding cards when you already have others open is not unusual. This is especially true since the manual underwriting process is more common with smaller financial institutions. Also, remember that the national "average" number of credit cards is only about four per consumer, so while your six cards is not exceptional among our forum members, it may be to them. Again, different lenders have different standards and sensititivities to profile metrics.
How long have you been a member at this credit union? If your membership is fairly new, they may want to get to know you better.
@doctormyers I gotta agree in spirit with @FinStar on thus one. I'd take a deep breath for a few, head to the garden and let your current cards get some age on them. You definitely don't want to be stuck in low-limit hell which can happen when you go too crazy too early with the applications. If there were a Lowes card or a couple other that were easy growers it would bother me less, but Barclay's will shut you down if the wind blows in the wrong direction and CapOne is kinda finicky these days with increases. Even Chase would have hope of future HP or auto increases bit they're out for now. Best with your credit journey.
@doctormyers wrote:CENTRAL MINNESOTA CREDIT UNION
pulled EQ for report
EQ 726
100% Payment History
6 Total Accounts ( 1 opened recently)
AAoA 1 Yr
3 Inqs
12% Utilization
Applied for the basic credit card since the Visa Signature requires a 750 Fico to apply. Rep called me next day and said she doesn't know if she should approve it because I have 6 credit cards and she thinks it may negatively affect my credit score if I open it. I told her it would not as I use their credit score simulator and if I open a new one it would in fact go up. She then asked why I wanted one in which I said Soon I will be getting an auto loan and I wanted to use a credit card for the down payment, also I got a new job and told her I will be spending more and I could use a card with rewards. She told me she would get back to me on Monday.
pretty redicoulis if you ask me. She said my score is great and I should continue to maintain it!! But I don't want to waste an hard INQ and plus this was the last card I wanted before I am going to garden.
CURRENT CARDS : Cap 1 QS $300 SL
Cap 1 Secured $200 SL
PenFed PCR $2000 SL
Barclays $250 SL
Barclays $750 SL
Elan Secured $500
I agree that it's ridiculous, and this does not seem like a credit union I would want to be tangled up with.
