Carter began her career in the theatre and was a member of the Circle Repertory Company in New York. She created the role of Effie Herrington at San Diego's Old Globe Theatre in Up In Saratoga, written by Terrence McNally and directed by Jack O'Brien. Her second West Coast theatre appearance was at the Pasadena Playhouse in a revival of Biloxi Blues. At the same time, she began acting on television, playing Sierra Estaban Reyes Montgomery in the CBS daytime soap opera, As the World Turns, from 1985 to 1988 and a short reprise in 1994. After leaving daytime TV, she guest starred in a number of television shows, before making her big screen debut in a starring role in the 1989 romantic comedy film, How I Got Into College opposite Anthony Edwards.

Carter was married from 1987 to 1994 to the actor Steven Weber whom she met on the set of As the World Turns when he played the character of Kevin Gibson (from 1985 to 1986). Her second marriage to James Woodruff (1997–2007) also ended in divorce. She has two daughters from that marriage. She is a distant cousin of Gabourey Sidibe.

In 1990, Carter played Rhonda LeBeck in the western Monster film, Tremors opposite Kevin Bacon and Fred Ward. She received the Saturn Award for Best Supporting Actress nomination for her performance in film. She later had the recurring role in the ABC drama series, China Beach as nurse Linda Matlock Lanier. In 1992, she played the leading role in the action film Sweet Justice and, in 1996, had a supporting part in Rob Reiner's drama, Ghosts of Mississippi. The following years, she guest starred on Law & Order, Murder, She Wrote, Diagnosis: Murder, ER, The Outer Limits, NYPD Blue, Chicago Hope, Judging Amy, Strong Medicine and CSI: Crime Scene Investigation. Carter was also regular cast member in the short-lived Fox sitcom, Secret Service Guy, in 1997. She also had number of leading roles on many made-for-television movies. Her final screen appearance was in the 2005 independent film Halfway Decent, co-starring with Ernie Hudson.