I recently purchased a motobecane TI cross bike for my commute to work (great bike

). I'm having an issue, though, getting the rack from my old commuter onto the new bike. Basically, the eyelets that are provided do not seem to be compatible with my rack. Because of the space around the eyelets, and the shape/size of the rack I am unable to actually screw the bolt in all the way (the rack runs into the actual frame). Pictures provided below.
I'm not sure what to do about this (most of the racks I've seen are shaped the same way / the same size). Is it alright to just not have the bolt screwed in all the way? I have to get a larger bolt anyway to fit fenders on the bike as well (only 1 set of eyelets). I wanted to have the rack closer to the eyelets (i.e. Fenders -> Rack -> Eyelets), but that doesn't seem to be possible.
Thoughts?
Thanks