Why does reformatting your memory card help it so much? What reformatting does is to redefine the file structure, keeping it clear of any corruption or the like which can lead to missing pictures and irritating error messages. This will also help lengthen the lifespan of your memory card: if you never reformat, the size of the memory card will shrink at a quicker rate than if you reformat regularly.
It's a good idea to make a habit of doing this every time after you download your photos to make sure you have a clean slate upon which to . There are no bad effects or downsides of reformatting your memory card extremely often, so don't worry about doing it too often.
Make sure that you reformat the card in the camera in which you'll be using it. This is important to make sure that the memory card is optimized for the particular camera. There are occasionally subtle differences between the reformatting software, especially between older and newer cameras, so avoiding these issues altogether is best.
A note: some cameras, especially of the Fuji brand, refer to this instead as "initialization" of the memory card. Don't fret, the steps are exactly the same as for any other camera. Just insert "initialize" instead of "format" for the remainder of the article.